Question
This year, Gogo Inc. granted a nonqualified stock option to Mrs. Mill to buy 12,000 shares of Gogo stock for $7.7 per share for five
This year, Gogo Inc. granted a nonqualified stock option to Mrs. Mill to buy 12,000 shares of Gogo stock for $7.7 per share for five years. At date of grant, Gogo stock was selling on a regional securities market for $7.49 per share. Gogo recorded $32,400 compensation expense for the estimated value of the option.
How much income must Mrs. Mill recognize this year?
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Financial Accounting Tools For Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine, Christopher D. Burnley
8th Canadian Edition
111959457X, 978-1119594574
