Question: your company issued employee 360,000 stock options to the CEO of your company, the option...
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Question: your company issued employee 360,000 stock options to the CEO of your company, the option expiry in five years and have a vesting period of 3 years based on the following schedule: 1/3 upon issuance, 1/3 after one year, and 1/3 after 2 years; Assume Zero Forfeiture Rate. The option were valued at $1 per option, You company is expensing this option monthly, Your CEO quit after 18 months and as a result his last tranche was forfeited. Before quitting, the CEO exercised all his vested options. * Note: the strike price of the options was $10. Required: creat your journal entries on spreadsheet. Question: your company issued employee 360,000 stock options to the CEO of your company, the option expiry in five years and have a vesting period of 3 years based on the following schedule: 1/3 upon issuance, 1/3 after one year, and 1/3 after 2 years; Assume Zero Forfeiture Rate. The option were valued at $1 per option, You company is expensing this option monthly, Your CEO quit after 18 months and as a result his last tranche was forfeited. Before quitting, the CEO exercised all his vested options. * Note: the strike price of the options was $10. Required: creat your journal entries on spreadsheet.
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Total Amount of Employee Compensation expense based on fair value 360000 1 360000 Amount to be trans... View the full answer
Related Book For
Intermediate Accounting principles and analysis
ISBN: 978-0471737933
2nd Edition
Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso
Posted Date:
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