Question: #12 Schmidt Electronics offered an incentive stock plan to its employees. On January 1, Year 1, 90,000 options were granted for 90,000 $1 par common

#12

#12 Schmidt Electronics offered an incentive stock plan to its employees. On Schmidt Electronics offered an incentive stock plan to its employees. On January 1, Year 1, 90,000 options were granted for 90,000 $1 par common shares. The exercise price equals the $ 6 market price of the common stock on the grant date. The vesting period is 3 years. The options cannot be exercised before January 1, Year 4, and expire on December 31, Year 5. Each option has a value of $ 3 based upon an option pricing model. What is the journal entry to record the exercise of 90% of the options during Year 4 when the market price of the stock was $10.

Schmidt Electronics offered an incentive stock plan to its employees. On January 1, Year 1, 90,000 options were granted for 90,000 $1 par common shares. The exercise price equals the $6 market price of the common stock on the grant date. The vesting period is 3 years. The options cannot be exercised before January 1, Year 4, and expire on December 31, Year 5. Each option has a value of $3 based upon an option pricing model. What is the journal entry to record the exercise of 90% of the options during Year 4 when the market price of the stock was $10. APIC in Excess of Par - Common 639,000 O 243,000 81,000 B. Cash APICStock Options Common Stock APIC in Excess of Par - Common 81,000 243,000 OC. Cash APICStock Options Common Stock APIC in Excess of Par - Common 90,000 81,000 90,000 81,000 OD. Cash 486.000 Click to select your

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