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Use the following information to answer the next 3 questions On 1/1/2019, options were granted to executives to purchase 30,000 shares of S10 par value

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Use the following information to answer the next 3 questions On 1/1/2019, options were granted to executives to purchase 30,000 shares of S10 par value common stock at S40 per share. It is assumed that the options were for services performed equally in 2019 and 2020. The Black- Scholes option pricing model determines the fair value of the options to be $650,000. Half of the options were exercised in 2024 when the market price of the stock was $65. 11. What is the compensation expense for the year 2019? a $650,000 b. $325,000 c. $1,200,000 d. $600,000 12. What amount of cash did the company receive when the options were exercised in 2024? a $600,000 b. $375,000 C. 5825.000 d. $975,000 13. Ir the remaining balf of the options expire 2025, what journal entry will the company make? a. Compensation expense 150,000 b. Loss on expired options 325,000 PIC - stock options 150,000 PIC - stock options 325,000 c. Loss on expired options 150,000 d. PIC - stock options 325,000 Compensation expense 150,000 PIC - expired options 325,000

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