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Wall Drugs offered an incentive stock option plan to its employees. On January 1, 2021, options were granted for 81,000$1 par common shares. The exercise
Wall Drugs offered an incentive stock option plan to its employees. On January 1, 2021, options were granted for 81,000$1 par common shares. The exercise price equals the $5 market price of the common stock on the grant date. The options cannot be exercised before January 1, 2024, and expire December 31,2025 . Each option has a fair value of $1 based on an option pricing model. What is the total compensation cost for this plan? Multiple Choice $405,000. $81,000. $0. $486,000
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