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I NEED CALCULATIONS FOR A CORRECT ANSWER. FIGURE IN RED BOX IS INCORRECT On January 1, 2015, Titania Inc. granted stock options to officers and
I NEED CALCULATIONS FOR A CORRECT ANSWER. FIGURE IN RED BOX IS INCORRECT
On January 1, 2015, Titania Inc. granted stock options to officers and key employees for the purchase of 31,400 shares of the company's dollar 14 par common stock at dollar 22 per share. The options were exercisable within a 5-year period beginning January 1, 2017, by grantees still in the employ of the company, and expiring December 31, 2021. The service period for this award is 2 years. Assume that the fair value option-pricing model determines total compensation expense to be dollar 406,200. On April 1, 2016, 3,140 options were terminated when the employees resigned from the company. The market price of the common stock was dollar 36 per share on this date. On March 31, 2017, 18,840 options were exercised when the market price of the common stock was dollar 43 per share. Prepare journal entries to record issuance of the stock options, termination of the stock options, exercise of the stock options, and charges to compensation expense, for the years ended December 31, 2015, 2016, and 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
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