Example $19$ On June $30,20$X$1,$ Trane Corporation granted compensatory stock options for $50,000$ shares of its $\backslash (\backslash$$ $20\backslash )$ par value common stock to certain of its key employees. The market price of the common stock on that date was $\backslash (\backslash$$ $36\backslash )$ per share and the option price was $\backslash (\backslash$$ $30\backslash ).$ The BlackScholes option pricing model determines total compensation expense to be $\backslash (\backslash$$ $600,000\backslash ).$ The options are exercisable beginning January $1,20$X$4,$ provided those key employees are still in Trane's employ at the time the options are exercised. The options expire on June $30,20$ X $5.$ On January $4,20$X$4,$ when the market price of the stock was $\backslash (\backslash$$ $42\backslash )$ per share, all $50,000$ options were exercised. What should be the amount of compensation expense recorded by Trane Corporation for the calendar year $20$X$3$ using the fair value method? Example $20$ Logan, Inc. had $120,000$ shares of treasury stock $(\backslash$$$10$ par value$)$ at December $31,20$X$3,$ which it acquired at $\backslash (\backslash$$ $11\backslash )$ per share. On June $\backslash (4,20\backslash$mathrm$\{$X$\}4\backslash ),$ Logan issued $60,000$ treasury shares to employees who exercised options under Logan's employee stock option plan. The market value per share was $\backslash (\backslash$$ $13\backslash )$ at December $31,20$X$3,\backslash (\backslash$$ $15\backslash )$ at June $4,20$X$4,$ and $\backslash (\backslash$$ $18\backslash )$ at December $31,20$X$4.$ The stock options had been granted for $\backslash (\backslash$$ $12\backslash )$ per share. The cost method is used. What is the balance of the treasury stock on Logan's balance sheet at December $31,20$X$4?$