29. On January 1, 2017, Denner Company granted stock options to officers and key employees for the purchase of 10,000 shares of the company's $1 par common stock at $20 per share as additional compensation for services to be rendered over the next three years. The options are exercisable during a five-year period beginning January 1, 2020 by grantees still employed by Porter. The Black-Sholes option pricing model determines total compensation expense to be $90,000. The market price of common stock was $20 per share at the date of grant. The journal entry to record the compensation expense related to these options for 2017 would include a credit to the Paid-in Capital-Stock Options account for a. $0. b. $18,000. c. $20,000. d.$30,000 e. $90,000

29. On January 1, 2017, Denner Company granted stock options to officers and key employees for the purchase of 10,000 shares of the company's $1 par common stock at $20 per share as additional compensation for services to be rendered over the next three years. The options are exercisable during a five-year period beginning January 1, 2020 by grantees still employed by Porter. The Black-Sholes option pricing model determines total compensation expense to be $90,000. The market price of common stock was $20 per share at the date of grant. The journal entry to record the compensation expense related to these options for 2017 would include a credit to the Paid-in Capital-Stock Options account for a. $0. b. $18,000. c. $20,000. d.$30,000 e. $90,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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