Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question 13 ... On January 1, 2016, Pall Corp. granted stock options to key employees for the purchase of 40,000 shares of the company's common
Question 13 ... On January 1, 2016, Pall Corp. granted stock options to key employees for the purchase of 40,000 shares of the company's common stock at $25 per share. The options are intended to compensate employees for the next two years. The options are exercisable within a four-year period beginning January 1, 2018, by the grantees still in the employ of the company. No options were terminated during 2016, but the company does have an experience of 4% forfeitures over the life of the stock options. The market price of the common stock was $32 per share at the date of the grant. Pall Corp. used the binomial pricing model and estimated the fair value of each of the options at $10. What amount should Pall charge to compensation expense for the year ended December 31, 2016? a. $153,600 b. $160,000 C. $192,000 d. $200,000
Step 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