Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On January 1, 2021, Novak Property Management Inc. introduced a stock-based compensation plan for its senior executives. The company has a December 31, 2021 year-end

image text in transcribed On January 1, 2021, Novak Property Management Inc. introduced a stock-based compensation plan for its senior executives. The company has a December 31, 2021 year-end and the following events occurred: - January 1, 2021 - The company issued 336,000 options to senior management executives for the purchase of shares at $10 / share. The fair value of the options using an options pricing model is $2,352,000. Options vest over a three-year period and it is estimated that 90% of the options will vest. At the end of 2024 , any unexercised options will expire. - December 31, 2021 - Management now estimates that 85% of the options will vest. - December 31, 2022 - Management now estimates that 80% of the options will vest. - January 1, 2024 - 112,000 options are exercised when the market price is $16 / share. Record the journal entries associated with the above transactions including any necessary entry at December 31, 2024. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions