Question
On January 1, 2016, Stoner Corporation granted compensatory share options to key employees for the purcahse of shares of the companys common stock at $25
On January 1, 2016, Stoner Corporation granted compensatory share options to key employees for the purcahse of shares of the companys common stock at $25 per share. The options are intended to compensate employees for teh next 2 years. The options are exercisable within a 4-year period beginning January 1, 2018, by grantees still in the employ of the company. The fair value of each option was $7 on the date of grant. Stoner expects to distribute 10,000 shares of treasury stock when acquired by Stoner during 2015 at a cost of $28 per share and was recorded under the cost method.. How much shoul dStoner charge to compensation expense for teh year ended December 31, 2016?
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