Question
On June 30, 2021, Nadal Corp. granted compensatory stock options for 25,000 shares of its $24 par value common stock to some of its key
On June 30, 2021, Nadal Corp. granted compensatory stock options for 25,000 shares of its $24 par value common stock to some of its key employees. The market price of the common stock on that date was $31 per share and the exercise price was $28. Using a fair value option pricing model, total compensation expense is determined to be $200,000. The options are exercisable beginning June 30, 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 July 1, 2024 there were still 12,000 shares that had not been exercised. What is the journal entry Nadal Corp. should do on July 1, 2024
On July 1, 2024 there were still 12,000 shares that had not been exercised. What is the journal entry Nadal Corp. should do on July 1, 2024
a. DR PIC-Expired Stock Options $104,000; CR PIC-Stock Options $104,000
b. DR PIC-Stock Options $288,000; CR PIC-Expired Stock Options $288,000
c. DR PIC-Stock Options $96,000; CR PIC-Expired Stock Options $96,000
d. DR PIC-Expired Stock Options $96,000; CR PIC-Stock Options $96,000
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