Lowen Corporation grants stock options to its managerial employees on December 31 of each year. Employees may acquire one share of common stock with each stock option. Lowen sets the exercise price equal to the market price of its common stock on the date of the grant. Employees must continue working for two years after the date of the grant before the options vest and employees can exercise them. This two-year period is the period of benefit. Exhibit 15.4 presents information for the stock options granted by Lowen on December 31 of each year.
Calculate the effect of the stock options on net income before income taxes for 2013 to2017.

  • CreatedMarch 04, 2014
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