On January 1, 2021, a company granted 36,000 stock options to top executives. The options become exercisable on January 1, 2025, and expire on December 31, 2027. Each option can be exercised to acquire one share of $1 par common stock for $15. An option- pricing model estimates the fair value per option to be $8 on grant date Unexpected turnover in 2022 resulted in the forfeiture of 20% of the options. What amount will be recognized as compensation expense in 2022? (Click to select)
On January 1, 2021, a company granted 36,000 stock options to top executives. The options become exercisable on January 1, 2025, and expire on December 31, 2027. Each option can be exercised to acquire one share of $1 par common stock for $15. An option- pricing model estimates the fair value per option to be $8 on grant date Unexpected turnover in 2022 resulted in the forfeiture of 20% of the options. What amount will be recognized as compensation expense in 2022? (Click to select)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On January 1, 2021, a company granted 36,000 stock options to top executives. The options become exercisable on January 1, 2025,
and expire on December 31, 2027. Each option can be exercised to acquire one share of $1 par common stock for $15. An option-
pricing model estimates the fair value per option to be $8 on grant date
Unexpected turnover in 2022 resulted in the forfeiture of 20% of the options. What amount will be recognized as compensation
expense in 2022?
(Click to select)
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