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On January 1,2010 , Cyber Company granted Chase, its president, stock options to buy 10,000 shares of Cyber's $10 par common stock at $20 per
On January 1,2010 , Cyber Company granted Chase, its president, stock options to buy 10,000 shares of Cyber's $10 par common stock at $20 per share. The options are exercisable for two years following the grant date. Chase exercised the options on December 31,2010 . The market price of the stock was $30 on January 1,2010 , and $40 on December 31 , 2010. The fair value of a similar stock option with them same terms was $12 on the grant date. By what net amount should stockholders' equity increase as a result of the grant and exercise of the option? $120,000 $200,000 $300,000 $400,000
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