Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please help me out here im stuck Martinez Audio Visual Incorporated offers an incentive stock option plan to its regional managers. On January 1, 2024,
Please help me out here im stuck
Martinez Audio Visual Incorporated offers an incentive stock option plan to its regional managers. On January 1, 2024, options were granted for 20 million $1 par common shares. - The exercise price is the market price on the grant date- $6 per share. - Options cannot be exercised prior to January 1, 2026, and expire December 31, 2030. - The fair value of the 20 million options, estimated by an appropriate option pricing model, is $1 per option. Required: 1. Determine the total compensation cost pertaining to the incentive stock option plan. 2. to 5. Prepare the appropriate journal entries to record compensation expense on December 31, 2024 and 2025. Prepare the appropriate journal entry to record the exercise of 75% of the options on March 12, 2026, when the market price is $7 per share and the entry on December 31, 2030, when the remaining options that have vested expire without being exercised. Complete this question by entering your answers in the tabs below. Prepare the appropriate journal entries to record compensation expense on December 31, 2024 and 2025. Prepare the appropriate journal entry to record the exercise of 75% of the options on March 12, 2026, when the market price is $7 per share and the entry on December 31,2030 , when the remaining options that have vested expire without being exercised. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Journal entry worksheet Record compensation expense on December 31, 2024. Note: Enter debits before creditsStep 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