Question: On January 1 , 2 0 2 5 , Crane Company granted John Johnson, an employee, an option to buy 5 0 0 shares of
On January Crane Company granted John Johnson, an employee, an option to buy shares of Crane Co stock for $ per share, with the option exercisable for years from the date of grant. Using a fair value option pricing model, total compensation expense is determined to be $ Johnson exercised his option on September and sold his shares on December
Quoted market prices of Crane Co stock during were:
January $ per share
September $ per share
December $ per share
The service period is two years, beginning January As a result of the option granted to Johnson, using the fair value method, Crane should recognize compensation expense for on its books in the amount of
Select answer from the options below
$
$
$
$
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
