On January 1, 2016, Howard, Inc. granted to a key executive a fixed compensatory share option plan for 1,000 shares of $4 par common stock for $30 a share. The fair value per option on that date was $14. The service period extended through December 31, 2017.

Refer to Exhibit 15-3. What entry, if any, was required on December 31, 2016?

a. no entry was necessary

b. Compensation Expense   7,000
       Paid-in Capital Share Options    7,000

c. Compensation Expense   6,000
    Paid-in Capital Share Options       6,000

d. Compensation Expense 9,000
     Deferred Compensation               9,000

Answer rating: 100% (QA)

Total Fair value of options 100014 14000 The Compensatio... View the full answer