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Issue 1,000 stock options to its employees on January 1, 2025. The fair value of the options is determined to be S2 as determined by the Black - Sholes option pricing model.The exercise price of the options is S13. The par value of the Harden common stock is $1 per share. The options will vest over 4 years (the service period is 4 years). Repare 12/31/2025 journal entries recording compensation expense

Issue 1,000 stock options to its employees on January 1, 2025. The fair value of the options is determined to be S2 as determined by the Black - Sholes option pricing model.The exercise price of the options is S13. The par value of the Harden common stock is $1 per share. The options will vest over 4 years (the service period is 4 years). Repare 12/31/2025 journal entries recording compensation expense

FINANCIAL ACCOUNTING
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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Issue 1,000 stock options to its employees on January 1, 2025. The fair value of the options is determined to be $2 as determined by the Black - Sholes option pricing model.The exercise price of the options is $13. The par value of the Harden common stock is $1 per share. The options will vest over 4 years (the service period is 4 years). Repare 12/31/2025 journal entries recording compensation expense
Transcribed Image Text:Issue 1,000 stock options to its employees on January 1, 2025. The fair value of the options is determined to be $2 as determined by the Black - Sholes option pricing model.The exercise price of the options is $13. The par value of the Harden common stock is $1 per share. The options will vest over 4 years (the service period is 4 years). Repare 12/31/2025 journal entries recording compensation expense
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