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Question 3 2 points Save Answer On January 1, Ferguson Company granted stock options to officers and key employees for the purchase of 20,000 shares
Question 3 2 points Save Answer On January 1, Ferguson Company granted stock options to officers and key employees for the purchase of 20,000 shares of the company's S1 par common stock at $20 per share as additional compensation for services to be rendered over the next three years. The options are exercisable during a five-year period after the vesting date by grantees still employed by Ferguson. The market price of common stock was $29 per share at the date of grant. An option pricing model determined the fair value of each option is S6. The journal entry to record the compensation expense at the end of the first year would include a credit to the Paid-in Capital-Stock Options account for A. $0. B. $24,000. C. $60,000. D. $40,000
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