Compensatory stock options were granted to Crocodile Corporation's executives on January 1, 20x5, allowing each of...

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Compensatory stock options were granted to Crocodile Corporation's executives on January 1, 20x5, allowing each of the three top executives to purchase 1,500 shares at $45 per share. The market price at the date of grant is $45 per share, and the total fair market value of the options (based on the Black-Scholes option pricing model) at the time the options were granted is $150,000. The options vest on Dec 31, 20x6 and the executives have until Dec 31, 20x7 to exercise the options. The stock options were exercised on June 30, 20x7. What is the total compensation expense that should be recognized in 20x6 with respect to these options? Compensatory stock options were granted to Crocodile Corporation's executives on January 1, 20x5, allowing each of the three top executives to purchase 1,500 shares at $45 per share. The market price at the date of grant is $45 per share, and the total fair market value of the options (based on the Black-Scholes option pricing model) at the time the options were granted is $150,000. The options vest on Dec 31, 20x6 and the executives have until Dec 31, 20x7 to exercise the options. The stock options were exercised on June 30, 20x7. What is the total compensation expense that should be recognized in 20x6 with respect to these options?

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Solution The total compensation expense that should be recognized in 2016 with respect to the option... View the full answer