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Date of Grant - Jan. 1,2010- Estimated option price, $25: Estimated number of shares in the plan, 30,000; Market price on the grant date,
Date of Grant - Jan. 1,2010- Estimated option price, $25: Estimated number of shares in the plan, 30,000; Market price on the grant date, $35. Par value of common stock - $1. Each option had a fair value of $5 on the grant date. Measurement date - Dec. 31, 2014; the first date which the options become exercisable; Actual shares in the plan - 32,000. Relevant Data: MKT PRICE Dec.31 2010 $35 Dec. 31,2011 36 Dec.31,2012 Dec.31,2013 Dec.31,2014 5429 37 40 OPTION PRICE $20 20 2220 Prepare all the necessary journal entries required under the fair value method.
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