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The exercise price is the market price of the shares on the date of grant, $40 per share. The fair value of the options, estimated by an appropriate option pricing model, is $14 per option. On January 1, 2021, Dongle Communications expects a forfeiture rate of 10%. On January 1, 2023, Dongle revises its estimate of forfeitures from 10% to 5%. Given this new information, provide the journal entries Dongle will make to record compensation expense in 2024 (round your answer to the nearest tenth)? Dr. Compensation Expense 40.0 Cr. Paid in capital--stock options 40.0 Dr. Compensation Expense 37.8 Cr. Paid in capital--stock options 37.8 Dr. Compensation Expense 44.1 Cr. Paid in capital--stock options 44.1 Dr. Compensation Expense 39.9 Cr. Paid in capital--stock options 39.9 The exercise price is the market price of the shares on the date of grant, $40 per share. The fair value of the options, estimated by an appropriate option pricing model, is $14 per option. On January 1, 2021, Dongle Communications expects a forfeiture rate of 10%. On January 1, 2023, Dongle revises its estimate of forfeitures from 10% to 5%. Given this new information, provide the journal entries Dongle will make to record compensation expense in 2024 (round your answer to the nearest tenth)? Dr. Compensation Expense 40.0 Cr. Paid in capital--stock options 40.0 Dr. Compensation Expense 37.8 Cr. Paid in capital--stock options 37.8 Dr. Compensation Expense 44.1 Cr. Paid in capital--stock options 44.1 Dr. Compensation Expense 39.9 Cr. Paid in capital--stock options 39.9
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Related Book For
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Posted Date:
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