On January 1, 2019, Stoner Corporation granted compensatory share options to key employees for the purchase of shares of the company's common stock at $25 per share. The options are intended to compensate employees for the next 2 years. The options are exercisable within a 4-year period beginning January 1, 2021, by grantees still in the employ of the company

On January 1, 2021, Hugh Morris Comedy Club (HMCC) granted 1.2 million stock options to key executives exercisable for 1.2 million shares of the company’s common stock at $20 per share. The stock options are intended as compensation for the next three years. The options are exercisable within a four-year period beginning January 1, 2024, by the executives still in the employ of the company. No options were terminated during 2021. The market price of the common stock was $23 per share at the date of the grant. HMCC estimated the fair value of the options at $12 each. 1% of the options are forfeited during 2022 due to executive turnover. What amount should HMCC record as compensation expense for the year ended December 31, 2022, assuming HMCC chooses the option to record forfeitures as they actually occur? (Enter your answer in whole dollars.)

19.On January 1, 2021, Teledyne Technologies granted stock options to key employees for the purchase of 85,000 shares of the company's common stock at $29 per share. The options are intended to compensate employees for the next two years. The options are exercisable within a four-year period beginning January 1, 2023, by the grantees still in the employ of the company. No options were terminated during 2021, but the company does have an experience of 4% forfeitures over the life of the stock options. The market price of the common stock was $35 per share at the date of the grant. Teledyne used the Binomial pricing model and estimated the fair value of each of the options at $11. What amount should Teledyne charge to compensation expense for the year ended December 31, 2021?   Multiple Choice   $897,600.   $467,500.   $935,000.   $448,800.

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On January 1, 2021, Flounder Inc. granted stock options to officers and key employees for the purchase of 24,000 shares of the company's $10 par common stock at $24 per share. The options were exercisable within a 5- year period beginning January 1, 2023, by grantees still in the employ of the company, and expiring December 31, 2027. The service period for this award is 2 years. Assume that the fair value option-pricing model determines total compensation expense to be $359,400. On April 1, 2022, 2,400 options were terminated when the employees resigned from the company. The market price of the common stock was $34 per share on this date. On March 31, 2023, 14,400 options were exercised when the market price of the common stock was $39 per share. Prepare journal entries to record issuance of the stock options, termination of the stock options, exercise of the stock options, and charges to compensation expense, for the years ended December 31, 2021, 2022, and 2023. (Credit account…

Heidi Software Corporation provides a variety of share-based compensation plans to its employees. Under its executive stock option plan, the company granted options on January 1, 2021, that permit executives to acquire 9 million of the company’s $1 par common shares within the next five years, but not before December 31, 2022 (the vesting date). The exercise price is the market price of the shares on the date of grant, $35.00 per share. The fair value of the 9 million options, estimated by an appropriate option pricing model, is $8 per option. No forfeitures are anticipated. Ignore taxes. Required: 1. Determine the total compensation cost pertaining to the options.2. Prepare the appropriate journal entry to record the award of options on January 1, 2021.3. Prepare the appropriate journal entry to record compensation expense on December 31, 2021.4. Prepare the appropriate journal entry to record compensation expense on December 31, 2022.

On January 1, 2019, Pepin Company adopts a compensatory share option plan for its 50 executives. The plan allows each executive to purchase 200 shares of its $2 par common stock for $30 per share after completing a 3-year service period. Pepin estimates the value of each option to be $14 on the grant date, and the company expects that 15% of the options will be forfeited and uses this rate in its compensation cost calculations in 2019. At the end of 2021, Pepin determined that the actual turnover was 7 executives for the entire service period. On January 6, 2022, 8 executives exercise their options. Required: 1. Prepare a schedule of Pepin’s compensation computations for its compensatory share option plan for 2019 through 2021. 2. Prepare Pepin’s journal entries for 2019 through 2022 in regard to this plan.

On November 1, 2020, Sarasota Company adopted a stock-option plan that granted options to key executives to purchase 37,500 shares of the company’s $10 par value common stock. The options were granted on January 2, 2021, and were exercisable 2 years after the date of grant if the grantee was still an employee of the company. The options expired 6 years from date of grant. The option price was set at $40, and the fair value option-pricing model determines the total compensation expense to be $562,500.All of the options were exercised during the year 2023: 25,000 on January 3 when the market price was $66, and 12,500 on May 1 when the market price was $75 a share.Prepare journal entries relating to the stock option plan for the years 2021, 2022, and 2023. Assume that the employee performs services equally in 2022 and 2023. (

Darius Inc. granted 200,000 stock options to its employees.  The options expire 10 years after the grant date of January 1, 2021.  The share price was $23 when the options were issued.  Employees who are still with the company five years after the grant date may exercise the options to purchase shares at $45 per share.  A consultant has estimated the value of each option on the grant date to be $2.50 per option. How much compensation expense should Darius Inc. record in 2021?   Question 5 options:   $460,000   $500,000   $880,000   $100,000

On January 1, 2021, Windsor Inc. granted stock options to officers and key employees for the purchase of 23,000 shares of the company’s $10 par common stock at $26 per share. The options were exercisable within a 5-year period beginning January 1, 2023, by grantees still in the employ of the company, and expiring December 31, 2027. The service period for this award is 2 years. Assume that the fair value option-pricing model determines total compensation expense to be $324,400.On April 1, 2022, 2,300 options were terminated when the employees resigned from the company. The market price of the common stock was $36 per share on this date.On March 31, 2023, 13,800 options were exercised when the market price of the common stock was $40 per share.Prepare journal entries to record issuance of the stock options, termination of the stock options, exercise of the stock options, and charges to compensation expense, for the years ended December 31, 2021, 2022, and 2023. (Credit account titles are…