In order to retain certain key executives, Wildhorse Corporation granted them incentive stock options on December 31, 2024.. of 152000 options were granted at an option price of $35 per share. Market prices of the stock were as follows: December 31, 2025 December 31, 2026 $44 per share 49 per share The options were granted as compensation for executives' services to be rendered over a two-year period beginning January 1, The Black-Scholes option-pricing model determined total compensation expense to be $1501000. What amount of compensation expense should Wildhorse recognize as a result of this plan for the year ended December 31, 20 under the fair value method? O $750500 $1653000 O $1501000 O $2622950

In order to retain certain key executives, Wildhorse Corporation granted them incentive stock options on December 31, 2024.. of 152000 options were granted at an option price of $35 per share. Market prices of the stock were as follows: December 31, 2025 December 31, 2026 $44 per share 49 per share The options were granted as compensation for executives' services to be rendered over a two-year period beginning January 1, The Black-Scholes option-pricing model determined total compensation expense to be $1501000. What amount of compensation expense should Wildhorse recognize as a result of this plan for the year ended December 31, 20 under the fair value method? O $750500 $1653000 O $1501000 O $2622950

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 7RE: On January 1, 2019, Phoenix Corporation adopts a performance-based share option plan for 25...

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Walters Audio Visual Inc. offers an incentive stock option plan to its regional managers. On January 1, 2021, options were granted for 40 million $1 par common shares. The exercise price is the market price on the grant date-$8 per share. Options cannot be exercised prior to January 1, 2023, and expire December 31, 2027. The fair value of the 40 million options, estimated by an appropriate option pricing model, is $1 per option. Required: 1. Determine the total compensation cost pertaining to the incentive stock option plan. 2. to 5. Prepare the appropriate journal entries to record compensation expense on December 31, 2021 and 2022. Prepare the appropriate journal entry to record the exercise of 75% of the options on March 12, 2023, when the market price is $9 per share and the entry on December 31, 2027, when the remaining options that have vested expire without being exercised. Complete this question by entering your answers in the tabs below. Req 1 Req 2 to 5 Prepare the…
Walters Audio Visual Inc. offers an incentive stock option plan to its regional managers. On January 1, 2018,options were granted for 40 million $1 par common shares. The exercise price is the market price on the grantdate—$8 per share. Options cannot be exercised prior to January 1, 2020, and expire December 31, 2024. The fairvalue of the 40 million options, estimated by an appropriate option pricing model, is $1 per option.Required:1. Determine the total compensation cost pertaining to the incentive stock option plan.2. Prepare the appropriate journal entry to record compensation expense on December 31, 2018.3. Prepare the appropriate journal entry to record compensation expense on December 31, 2019.4. Prepare the appropriate journal entry to record the exercise of 75% of the options on March 12, 2020, whenthe market price is $9 per share.5. Prepare the appropriate journal entry on December 31, 2024, when the remaining options that have vestedexpire without being exercised.
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