On January 2, 2021, the Life Science Corporation granted 9,000 stock options allowing employees to purchase 9,000 shares of the company’s common stock at $50 per share. A third of the options vest at the end of each of the next three years (i.e., a third will vest at the end of 2021). The company treats each tranche as a separate award based on the vesting date. The fair values of the options that vest at the end of 2021-2023 are $5.00, $6.00, and $8.00, respectively. REQUIRED: 1. Calculate compensation expense for Life Science during 2021-2023. 2. Prepare the journal entries for 2021-2023.

On January 2, 2021, the Life Science Corporation granted 9,000 stock options allowing employees to purchase 9,000 shares of the company’s common stock at $50 per share. A third of the options vest at the end of each of the next three years (i.e., a third will vest at the end of 2021). The company treats each tranche as a separate award based on the vesting date. The fair values of the options that vest at the end of 2021-2023 are $5.00, $6.00, and $8.00, respectively. REQUIRED: 1. Calculate compensation expense for Life Science during 2021-2023. 2. Prepare the journal entries for 2021-2023.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 7RE: On January 1, 2019, Phoenix Corporation adopts a performance-based share option plan for 25...

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Date May 1, 2028 Account Titles and Explanation Debit Credit
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