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Please provide the anwers to the following questions. Showing work is not required but will be greatly appreciated. ABC Company grants the company's top 5
Please provide the anwers to the following questions. Showing work is not required but will be greatly appreciated.
ABC Company grants the company's top 5 executives stock options for a total of 10,000 shares (S1 pary with a current FMV of 560 and an option price of $50. Using an acceptable fair value option pricing model, the total compensation expense is $200,000 and the allocation period is 2 years. a) Prepare the journal entry at the grant date: b) Prepare the journal entry at the end of Year 1 to record compensation expenses c) Prepare the journal entry at the end of Year 2 to record compensation expense: d) Prepare the journal entry in Year 3 at the exercise of 2,000 (20%) of the options: Extra credit:(2 points) 1) Using the information provided in Problem 15, prepare the journal entry in Year 3 at the expiration of the remaining 8,000 options, assuming all employees satisfied employment requirements Step by Step Solution
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