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Johnstown Company granted 1 0 officers rights to buy 1 0 , 0 0 0 shares each of common stock $ 1 par, at $

Johnstown Company granted 10 officers rights to buy 10,000 shares each of common stock $1 par, at $15 per share on May 1,2024, the grant date. The stock was selling for $10 per share at the time. The rights cannot be exercised until the beginning of 2026 and expire at the end of 2029. Compensation expense is $90,000, covering a one year period of 2025.

Record the following:
Dr.Cr.May 1,2024, the grant date, issue of the rights.
Dec. 31,2025, compensation expense Jul. 1,2027,80% of the rights were exercised, as the stock climbed to $20 per share.
Dec. 31,2028,10% of the rights expired because one officer left the company.
On December 31,2029,10% of the rights expired because one officer decided not to exercise the right.  
 
 

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