Question
Jan 1, 2021, jj inc. granted 500,000 options to its executive team. Each option allows the executive to purchase one common share at $100. The
Jan 1, 2021, jj inc. granted 500,000 options to its executive team. Each option allows the executive to purchase one common share at $100. The options are exercisable for three years, starting on Jan 1, 2024, if the executive is still employed at Ontology Inc. At the time, the market price of each common share was $75. It was determined that the fair compensation value of the option is $1,700,000. On Jan 1, 2022, an executive with 100,000 options allocated to them leaves the company to become a teacher. At the time, the market value of a common share was $107. On Jun 12, 2025, an executive 50,000 options, leaves the company and request to have his stock options exercised. At the time, the market value of a common share was $125. There are no other options exercised. Required prepare all journal entry
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started