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Question 11 On January 1, 2021, Oriole Company granted Sam Wine, an employee, an option to buy 1,000 shares of Oriole Co. stock for $30
Question 11 On January 1, 2021, Oriole Company granted Sam Wine, an employee, an option to buy 1,000 shares of Oriole Co. stock for $30 per share, the option exercisable for 5 years from date of grant. Using a fair value option pricing model, total compensation expense is determined to be $5820. Wine exercised his option on October 1, 2021 and sold his 1,000 shares on December 1, 2021. Quoted market prices of Oriole Co. stock in 2021 were: July 1 $32 per share October 1 $38 per share December 1 $42 per share The service period is for three years beginning January 1, 2021. As a result of the option granted to Wine, using the fair value method, Oriole should recognize compensation expense for 2021 on its books in the amount of $1940. $1455. $5820. $0
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