Business, 16.04.2020 00:45 dawsoncollins4117
Wall Drugs offered an incentive stock option plan to its employees. On January 1, 2021, options were granted for 60,000 $1 par common shares. The exercise price equals the $5 market price of the common stock on the grant date. The options cannot be exercised before January 1, 2024, and expire December 31, 2025. Each option has a fair value of $1 based on an option pricing model. Which is the correct entry to record compensation expense for the year 2021? Multiple Choice a. Compensation expense 12,000 Paid-in capital—stock options 12,000 b. Compensation expense 20,000 Common stock 20,000 c. Compensation expense 20,000 Paid-in capital—stock options 20,000 d. Compensation expense 80,000 Paid-in capital—stock options 80,000
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Wall Drugs offered an incentive stock option plan to its employees. On January 1, 2021, options were...
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