On January 1, 2020, Crane Corporation granted 5,200 options to executives. Each option entitles the holder to purchase one share of Crane's $5 par value common stock at $50 per share at any time during the next 5 years. The market price of the stock is $66 per share on the date of grant. The fair value of the options at the grant date is $136,000. The period of benefit is 2 years. Prepare Crane's journal entries for January 1, 2020, and December 31, 2020 and 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
On January 1, 2020, Crane Corporation granted 5,200 options to executives. Each option entitles the holder to purchase one share of Crane's $5 par value common stock at $50 per share at any time during the next 5 years. The market price of the stock is $66 per share on the date of grant. The fair value of the options at the grant date is $136,000. The period of benefit is 2 years. Prepare Crane's journal entries for January 1, 2020, and December 31, 2020 and 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
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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![On January 1, 2020, Crane Corporation
granted 5,200 options to executives. Each option
entitles the holder to purchase one share of Crane's
$5 par value common stock at $50 per share at any
time during the next 5 years. The market price of the
stock is $66 per share on the date of grant. The fair
value of the options at the grant date is $136,000.
The period of benefit is 2 years.
Prepare Crane's journal entries for January 1, 2020,
and December 31, 2020 and 2021. (Credit account
titles are automatically indented when amount is
entered. Do not indent manually. If no entry is
required, select "No Entry" for the account titles
and enter 0 for the amounts.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe8bdfa33-1942-447e-b795-22c8e965d533%2F43c666be-0b5b-4141-b9b9-ab7aeef6950e%2Fuq01c2k_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On January 1, 2020, Crane Corporation
granted 5,200 options to executives. Each option
entitles the holder to purchase one share of Crane's
$5 par value common stock at $50 per share at any
time during the next 5 years. The market price of the
stock is $66 per share on the date of grant. The fair
value of the options at the grant date is $136,000.
The period of benefit is 2 years.
Prepare Crane's journal entries for January 1, 2020,
and December 31, 2020 and 2021. (Credit account
titles are automatically indented when amount is
entered. Do not indent manually. If no entry is
required, select "No Entry" for the account titles
and enter 0 for the amounts.)
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