Question
On January 1, 2012, Layton Hardware Company established a fixed stock option plan for its senior employees. A total of 90,000 options was granted that
On January 1, 2012, Layton Hardware Company established a fixed stock option plan for its senior employees. A total of 90,000 options was granted that permit employees to purchase 90,000 shares of $2 par common stock at $48 per share. Each option had a fair value of $7 on the grant date. Options are exercisable beginning on January 1, 2015, and can be exercised anytime during 2015.
. The market price for Layton common stock on January 1, 2012, was $50. Assume that all options were exercised on December 31, 2015.
Prepare all entries required for the years 2012-2015 under the fair value method.
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