Question: As a reminder, looking for a memo documenting the proper accounting for the example we used in class: 1. 1000 options granted 1/1/Year1 2. Option
As a reminder, looking for a memo documenting the proper accounting for the example we used in class: 1. 1000 options granted 1/1/Year1 2. Option price: $10/share (equal to the market price of the stock at the date of the grant) 3. Option value: $1/share (determined by option pricing model) 4. Vesting period: 3 years 5. Anticipated forfeiture rate: 10% 6. Option exercise period: 2 years 7. Assume the options are exercised on the last possible date at a time when the market price of the stock is $15/share You may use any applicable sources, but you must cite the ASC section for the authority to document your proposed accounting for this transaction. Include journal entries to demonstrate your answers
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