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Drugs offers an incentive stock option plan to its employees. On January 1, 2021, options were granted for 80,000 $1 par common shares. The exercise
Drugs offers an incentive stock option plan to its employees. On January 1, 2021, options were granted for 80,000 $1 par common shares. The exercise price equals the $6 market price of the common stock on the grant date. The options cannot be exercised before January 1, 2024, and expire December 31, 2025. Each option has a fair value of $1 based on an option pricing model. Which is the correct entry to record the exercise of 96% of the options on April 15, 2024, when the market price of the stock was $9?
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