Answered step by step
Verified Expert Solution
Question
1 Approved Answer
On June 30, 2021, Crane Company granted compensatory stock options for 24000 shares of its $ 24 par value common stock to certain of its
On June 30, 2021, Crane Company granted compensatory stock options for 24000 shares of its $ 24 par value common stock to certain of its key employees. The market price of the common stock on that date was $ 31 per share and the option price was $ 28. Using a fair value option pricing model, total compensation expense is determined to be $ 103000. The options are exercisable beginning January 1, 2023, providing those key employees are still in the employ of the company at the time the options are exercised. The options expire on June 30, 2024. On January 4, 2023, when the market price of the stock was $ 36 per share, all options for the 24000 shares were exercised. The service period is for two years beginning January 1, 2021. Using the fair value method, what should be the amount of compensation expense recorded by Crane Company for these options on December 31, 2021? O $ 103000 O $24141 O $0 O $ 51500
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started