FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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
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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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Step 1: To recognize the compensation cost associated with the stock options.
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Step 2: Journal Entries
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