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View Policies Your answer has been saved. See score details after the due date. On January 1, 2019, Vaughn Manufacturing granted Sam Wine, an employee,
View Policies Your answer has been saved. See score details after the due date. On January 1, 2019, Vaughn Manufacturing granted Sam Wine, an employee, an option to buy 1,000 shares of Vaughn Co.stock for $30 per share the option exercisable for 5 years from date of grant. Using a fair value option pricing model, total compensation expense is determined to be $5640. Wine exercised his option on October 1, 2021 and sold his 1,000 shares on December 1, 2021. Quoted market prices of Vaughn Co. stock in 2021 were: July 1 $32 per share October 1 $38 per share December 1 $42 per share The service period is for three years beginning January 1, 2021. As a result of the option granted to Wine, using the fair value method, Vaughn should recognize compensation expense for 2019 on its books in the amount of
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