Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Under its executive stock option plan, National Corporation granted 2 0 million options on January 1 , 2 0 2 1 , that permit executives

Under its executive stock option plan, National Corporation granted 20 million options on January 1,2021, that permit executives to
purchase 20 million of the company's $1 par common shares within the next six years, but not before December 31,2023(the vesting
date). The exercise price is the market price of the shares on the date of grant, $24 per share. The fair value of the options, estimated
by an appropriate option pricing model, is $3 per option. Suppose that the options are exercised on April 3,2024, when the market
price is $29 per share.
Ignoring taxes, what journal entry will National record? (If no entry is required for a transaction/event, select "No journal entry
required" in the first account field. Enter your answers in millions (i.e.,10,000,000 should be entered as 10).)
Journal entry worksheet
1
Record entry for options exercised on April 3,2024, when the market price is
$29 per share.
Note: Enter debits before credits.Under its executive stock option plan, National Corporation granted 20 million options on January 1,2021, that permit executives to purchase 20 million of the companys $1 par common shares within the next six years, but not before December 31,2023(the vesting date). The exercise price is the market price of the shares on the date of grant, $24 per share. The fair value of the options, estimated by an appropriate option pricing model, is $3 per option. Suppose that the options are exercised on April 3,2024, when the market price is $29 per share.
Ignoring taxes, what journal entry will National record? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e.,10,000,000 should be entered as 10).)
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas

9th Edition

125972266X, 9781259722660

More Books

Students also viewed these Accounting questions

Question

Which of the codes are linear codes? |C = 0_

Answered: 1 week ago

Question

Where do your students find employment?

Answered: 1 week ago