On January 2, 20X1, Utta Corp. (a calendar- year company) grants 10,000 stock options with a...

 

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On January 2, 20X1, Utta Corp. (a calendar- year company) grants 10,000 stock options with a 3-year vesting period to employees. On the grant date, the market price of the $1 par value stock is equal to the exercise price of $20 per share. On the date of grant, the estimated value of the options is $6 per option. During 20X4, when the market value of the stock is $30 per share, 9,000 stock options were exercised. Utta Corp. should recognize this event by debiting (Select all that apply) • loss on stock options for 9,000. • paid-in capital-stock options for $54,000. • paid-in capital in excess of par for $171,000. cash for $180,000. On January 2, 20X1, Utta Corp. (a calendar- year company) grants 10,000 stock options with a 3-year vesting period to employees. On the grant date, the market price of the $1 par value stock is equal to the exercise price of $20 per share. On the date of grant, the estimated value of the options is $6 per option. During 20X4, when the market value of the stock is $30 per share, 9,000 stock options were exercised. Utta Corp. should recognize this event by debiting (Select all that apply) • loss on stock options for 9,000. • paid-in capital-stock options for $54,000. • paid-in capital in excess of par for $171,000. cash for $180,000.

Answer rating: 100% (QA)

The correct answers are B C and D A Loss on stock options for 9000 Utta Corp should not recognize a loss on stock options when the options are exercis... View the full answer