On January 1, 2019, the shareholders of Aylmer approved a plan that grants options to the company's executives to purchase 10,000 of the company's common shares each. The options are granted on January 1, 2020 and may be exercised at any time after December 31, 2022. The exercise price per share is $32. Based on an options pricing model, the total compensation expense will be $150,000. At December 31, 2020, the market price is $26 per share.

On January 1, 2019, the shareholders of Aylmer approved a plan that grants options to the company's executives to purchase 10,000 of the company's common shares each. The options are granted on January 1, 2020 and may be exercised at any time after December 31, 2022. The exercise price per share is $32. Based on an options pricing model, the total compensation expense will be $150,000. At December 31, 2020, the market price is $26 per share.

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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