On June 30, 20x5, Kinshasa Corp. granted stock options for 21937 of its no par value common
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On June 30, 20x5, Kinshasa Corp. granted stock options for 21937 of its no par value common shares to key employees, at an option price of $37. On that date, the market price of the common shares was $33. The Black-Scholes option-pricing model determined the total compensation expense to be $776263. The options are exercisable beginning January 1, 20x8, providing the key employees are still employed by Kinshasa at the time the options are exercised. The options expire on June 30, 20x9. On January 2, 20x8, when the market price of the shares was $41, all options were exercised.
What is the compensation expense Kinshasa should have recorded for calendar 20X7?
Related Book For
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
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