Question
On January 2, 2016 Kine Co. granted Morgan, its president, compensatory stock options to buy 1,000 shares of Kines $10 par common stock. the options
On January 2, 2016 Kine Co. granted Morgan, its president, compensatory stock options to buy 1,000 shares of Kines $10 par common stock. the options call for a price of $20 per share and are exercisable beginning on December 31, 2016. the options can be exercised any time during the three years beginning with this date. Morgan exercised the options on December 31, 2016. the market price of the stock was $40 on January 2, 2016, and $70 on December 31, 2016. the fair value of the options was $25. By what net amount should stockholders equity increase as a result of the grant and exercise of the options?
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