egy major compensation incentive for its top executives. • On January 1, 2018, 20 million options were granted, eacl the executive owning them the right to acquire six $1 par common shares. The exercise price is the market price on the grant date- share. • Options vest on January 1, 2022. They cannot be exercise before that date and will expire on December 31, 2024. • The fair value of the 20 million options, estimated by an appropriate option pricing model, is $40 per option. Ignor income tax. on March 1, 2022, when the market price of Wilson's stock v er share, 3 million of the options were exercised. he journal entry to record this would include: O A debit to paid-in capital-stock options for $120 million All of these answer choices are correct O A credit to common stock for $75 million
egy major compensation incentive for its top executives. • On January 1, 2018, 20 million options were granted, eacl the executive owning them the right to acquire six $1 par common shares. The exercise price is the market price on the grant date- share. • Options vest on January 1, 2022. They cannot be exercise before that date and will expire on December 31, 2024. • The fair value of the 20 million options, estimated by an appropriate option pricing model, is $40 per option. Ignor income tax. on March 1, 2022, when the market price of Wilson's stock v er share, 3 million of the options were exercised. he journal entry to record this would include: O A debit to paid-in capital-stock options for $120 million All of these answer choices are correct O A credit to common stock for $75 million
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
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 23E
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning