On January 1, 2018, Evans Company granted its employee, an option to buy 5,000 shares of...
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On January 1, 2018, Evans Company granted its employee, an option to buy 5,000 shares of Evans Co. stock for $25 per share, the option exercisable for 5 years from January 1, 2020. Using a fair value option pricing model, total compensation expense is determined to be $38,000. One employee resigned from Evans on 10/1/2019 which caused the termination of 1,000 shares of the options. The service period is for two years beginning January 1, 2018. How will Evans account for the termination of the 1,000 shares of options (Journal Entry)? On January 1, 2018, Evans Company granted its employee, an option to buy 5,000 shares of Evans Co. stock for $25 per share, the option exercisable for 5 years from January 1, 2020. Using a fair value option pricing model, total compensation expense is determined to be $38,000. One employee resigned from Evans on 10/1/2019 which caused the termination of 1,000 shares of the options. The service period is for two years beginning January 1, 2018. How will Evans account for the termination of the 1,000 shares of options (Journal Entry)?
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Related Book For
South Western Federal Taxation 2015
ISBN: 9781305310810
38th edition
Authors: William H. Hoffman, William A. Raabe, David M. Maloney, James C. Young
Posted Date:
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