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Tools Paradise is a local hardware store. In 2022, they issued 1027 stock options to EACH of their 288 employees. The stock options have
Tools Paradise is a local hardware store. In 2022, they issued 1027 stock options to EACH of their 288 employees. The stock options have a 2-year vesting period. The fair value of each option was $2.89 on the grant date and $3.50 on the vesting date. At the end of 2022, the accounting department was informed that 20 employees departed during the year (2022) and it was estimated that 73 more employees would leave before the 2-year vesting period elapsed. At the end of 2023, the company checks with HR again and found out that 28 employees actually departed during 2023. Calculate the compensation expense that the company will recognize at the end of 2023 related to these options. Do not round intermediary answers. Round your final answer to the nearest dollar. Do not use $ signs or decimal places in your answer.
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