Question: On July 18 2014 Amos Corporation granted nontransferable options to

On July 18, 2014, Amos Corporation granted nontransferable options to certain key employees as additional compensation. The options permit the purchase of 20,000 shares of Amos’s common stock at a price of $30 per share. On the grant date, the stock’s market value was $42 per share. The options were exercisable beginning January 1, 2015, and expire on December 31, 2018. On February 3, 2015, when the stock was selling for $45 per share, all options were exercised.

Required:
How much compensation expense should Amos have recorded in 2014 and 2015 if the options are worth $17 per share on the grant date?




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  • CreatedSeptember 10, 2014
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