On January 1, 2010, Sorvino Corp. granted stock options to its chief executive officer. This is the only stock option that Sorvino offers and the details are as follows:
On January 1, 2015, 4,000 of the options were exercised when the market price of the common shares was $78. The remaining stock options were allowed to expire. The CEO remained with the company throughout the period.
Record the journal entries at the following dates. Assume that the entity follows PE GAAP and has decided not to include an estimate of forfeitures upon initial recognition of the compensation expense.
(a) January 1, 2010
(b) December 31, 2010, the fiscal year end of Sorvino Inc.
(c) January 1, 2015—the exercise date
(d) December 31, 2017—the expiry date of the options

  • CreatedAugust 23, 2015
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