Question
On January 1, 2018, Tim Corporation granted Ted, its president, a compensatory stock option plan to purchase 7,000 shares of Tim's $10 par common stock.
On January 1, 2018, Tim Corporation granted Ted, its president, a compensatory stock option plan to purchase 7,000 shares of Tim's $10 par common stock. The exercise price of each option is $25 and each option has a fair value of $9. The options become exercisable on January 1, 2022, after four years of service.
How much compensation expense should Tim recognize in 2018?
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Financial Accounting Text Only
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel
5th Edition
0006575404, 978-0006575405
