1.On January 1, 2019, a company granted100,000 options to key executives. Eachoption allows the executive to purchase oneshare of the company's $14 par valuecommon stock at a price of $44 per share. Theoptions were exercisable within a 2-yearperiod beginning January 1, 2022. On thegrant date, a fair value option-pricing modeldetermines total compensation to be$800,000.On January 1, 2022, 1,000 options wereexercised. In the journal entry to record theexercise, how much should be recorded forPaid-in Capital in Excess of Par – commonstock?2.A company issued 13,000 shares of $22 parvalue common stock upon conversion of24,000 shares of $34 par value preferredstock. The preferred stock was originallyissued at $43 per share. The common stock istrading at $22 per share at the time ofconversion. In the journal entry to record theconversion of the preferred stock, how muchshould we record for Paid-in Capital in Excessof Par - common stock?

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1.On January 1, 2019, a company granted 100,000 options to key executives. Each option allows the executive to purchase one share of the company's $14 par value common stock at a price of $44 per share. The options were exercisable within a 2-year period beginning January 1, 2022. On the grant date, a fair value option-pricing model determines total compensation to be $800,000.

1.On January 1, 2019, a company granted 100,000 options to key executives. Each option allows the executive to purchase one share of the company's $14 par value common stock at a price of $44 per share. The options were exercisable within a 2-year period beginning January 1, 2022. On the grant date, a fair value option-pricing model determines total compensation to be $800,000.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 7E

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