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WorldStreet, Inc., offers a stock option plan to its regional managers. On January 1 , 2 0 2 6 , 4 0 million options were
WorldStreet, Inc., offers a stock option plan to its regional managers. On January million options were granted for million $ par common shares. The exercise price is the market price on the grant date, $ per share. Options cannot be exercised prior to January and expire December The fair value of the options, estimated by an appropriate option pricing model, is $ per option. Because the plan does not qualify as an incentive plan, WorldStreet will receive a tax deduction upon exercise of the options equal to the excess of the market price at exercise over the exercise price. The income tax rate is Determine the total compensation cost pertaining to the stock option plan. Prepare the appropriate journal entries to record compensation expense and its tax effect on December Prepare the appropriate journal entries to record compensation expense and its tax effect on december Record the exercise of the otpiosn and their tax effect if all of the options are exercised on March when the market price per share is $ Assume the option plan qualifies as an incentive plan. Prepare the appropriate journal entries to record compensation and its tax effect on December Prepare the option plan qualifies as an incentive plan, record the exercise of options and their tax effect if all options are exercised on March when the market price per share is $
WorldStreet, Inc., offers a stock option plan to its regional managers. On January million options were granted for million $ par common shares. The exercise price is the market price on the grant date, $ per share. Options cannot be exercised prior to January and expire December The fair value of the options, estimated by an appropriate option pricing model, is $ per option. Because the plan does not qualify as an incentive plan, WorldStreet will receive a tax deduction upon exercise of the options equal to the excess of the market price at exercise over the exercise price. The income tax rate is
Determine the total compensation cost pertaining to the stock option plan.
Prepare the appropriate journal entries to record compensation expense and its tax effect on December
Prepare the appropriate journal entries to record compensation expense and its tax effect on december
Record the exercise of the otpiosn and their tax effect if all of the options are exercised on March when the market price per share is $
Assume the option plan qualifies as an incentive plan. Prepare the appropriate journal entries to record compensation and its tax effect on December
Prepare the option plan qualifies as an incentive plan, record the exercise of options and their tax effect if all options are exercised on March when the market price per share is $
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