Question
On December31, 2019, Owl Co. granted employee options to purchase 7,500 common shares at$200 per share. The options are exercisable on January 1, 2022, after
On December31, 2019, Owl Co. granted employee options to purchase 7,500 common shares at$200 per share. The options are exercisable on January 1, 2022, after employees completing 2 years ofservice. Fair values of the options and market prices of the stock were asfollows:
Option Fair ValueStock Market Price
December 31, 2019$75 $205
December 31, 2020$70 $200
January 1, 2022 $80 $210
Assuming no forfeitures, what amount should Owl recognize as compensation expense for 2020?
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Fundamental Managerial Accounting Concepts
Authors: Thomas Edmonds
6th Edition
78110890, 978-0078110894
