Question
Pris Inc. granted options for one million shares of its $1 par common stock at the beginning of the current year. the exercise price is
Pris Inc. granted options for one million shares of its $1 par common stock at the beginning of the current year. the exercise price is $35 per share, which was also the market value of the stock on the grant date. The value of the options was estimated at $4 per options.
1- what would be the total compensation indicated by these options?
2- if the options have a vesting period of four years, what would be the balance in "paid-in capital - stock options" two years after the grant date?
3- only half of the entire options were exercised after the four year vesting period. Prepare the journal entry to reflect this event.
only half of the entire options were exercised after the four year vesting period. Prepare the journal entry to reflect this event.
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