egy major compensation incentive for its top executives. • On January 1, 2018, 20 million options were granted, eacl the executive owning them the right to acquire six $1 par common shares. The exercise price is the market price on the grant date- share. • Options vest on January 1, 2022. They cannot be exercise before that date and will expire on December 31, 2024. • The fair value of the 20 million options, estimated by an appropriate option pricing model, is $40 per option. Ignor income tax. on March 1, 2022, when the market price of Wilson's stock v er share, 3 million of the options were exercised. he journal entry to record this would include: O A debit to paid-in capital-stock options for $120 million All of these answer choices are correct O A credit to common stock for $75 million
egy major compensation incentive for its top executives. • On January 1, 2018, 20 million options were granted, eacl the executive owning them the right to acquire six $1 par common shares. The exercise price is the market price on the grant date- share. • Options vest on January 1, 2022. They cannot be exercise before that date and will expire on December 31, 2024. • The fair value of the 20 million options, estimated by an appropriate option pricing model, is $40 per option. Ignor income tax. on March 1, 2022, when the market price of Wilson's stock v er share, 3 million of the options were exercised. he journal entry to record this would include: O A debit to paid-in capital-stock options for $120 million All of these answer choices are correct O A credit to common stock for $75 million
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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