the stockholders adopted a stock option plan for top executives whereby each might receive rights… 1 answer below »

On 1/1/17, the stockholders adopted a stock option plan for top executives whereby each might receive rights to purchase up to 22,000 shares of common stock at $35 per share. The par value is $10 per share. 2. On 2/1/17, options were granted to each of five executives to purchase 22,000 shares. The options were non-transferable and the executive had to remain an employee of the company to exercise the option. The options expire on 2/1/19. It is assumed that the options were for services performed equally in 2017 and 2018. The Black-Scholes option pricing model determines total compensation expense to be $2,000,000. 3. At 2/1/19, four executives exercised their options. The fifth executive chose not to exercise his options, which therefore were forfeited.
No. Date Account Tides and Explanation

Looking for a similar assignment? Get help from our qualified experts!

Order Now

Don't use plagiarized sources. Get Your Custom Essay on
the stockholders adopted a stock option plan for top executives whereby each might receive rights… 1 answer below »
Just from $11/Page
Order Now