Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
On January 1, 2020, Blue Corp. granted stock options to its chief executive officer (CEO). The details of the plan offered by Blue are as
On January 1, 2020, Blue Corp. granted stock options to its chief executive officer (CEO). The details of the plan offered by Blue are as follows: Option to purchase 10,000 common shares Option price per share $24.00 Fair value per common share on grant date $19.20 Stock option expiration 6 years after issuance Date CEO is first eligible to exercise 3 years after issuance Fair value of options on grant date $6.00 On January 1, 2023, 8,000 of the options were exercised when the fair value of the common shares was $28. The remaining stock options were allowed to expire and the CEO did not leave Blue during the period leading up to expiration of the options. Instructions: Record the journal entries are the following dates, assuming that Blue follows ASPE and accounts for forfeitures as they occur. a. January 1, 2020 b. December 31, 2020, the year-end date C. January 1, 2023, the exercise date d. December 31, 2025, the expiry date of the options
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/669e3eae46e83_765669e3eaddf3a6.jpg)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started