Schmidt Electronics offered an incentive stock plan to its employees. On January 1, Year 1, options were
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Question:
Schmidt Electronics offered an incentive stock plan to its employees. On January 1, Year 1, options were granted for 80 comma 00080,000
$1 par common shares. The exercise price equals the $ 8$8
market price of the common stock on the grant date. The options cannot be exercised before January 1, Year 4, and expire on December 31, Year 5. Each option has a value of $ 3$3
based upon an option pricing model.
What is the journal entry to record the exercise of 9090%
of the options during Year 4 when the market price of the stock was $10
Posted Date: