On January 1, 2022, Wildhorse Corp. granted stock options for 71000 shares of its $10 par value common stock to key employees. The market price of the common stock on that date was $23 per share and the option price was $20. The Black-Scholes option pricing model determined total compensation expense to be $636000. The options are exercisable beginning January 1, 2025, provided those key employees are still in Wildhorse's employ at the time. The options expire on January 1, 2026. The amount of compensation expense Wildhorse should record for 2024 under the fair value method is O $0. O $318000. O $106000. O $212000.
On January 1, 2022, Wildhorse Corp. granted stock options for 71000 shares of its $10 par value common stock to key employees. The market price of the common stock on that date was $23 per share and the option price was $20. The Black-Scholes option pricing model determined total compensation expense to be $636000. The options are exercisable beginning January 1, 2025, provided those key employees are still in Wildhorse's employ at the time. The options expire on January 1, 2026. The amount of compensation expense Wildhorse should record for 2024 under the fair value method is O $0. O $318000. O $106000. O $212000.
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter15: Shareholders’ Equity: Capital Contributions And Distributions
Section: Chapter Questions
Problem 18E
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Transcribed Image Text:On January 1, 2022, Wildhorse Corp. granted stock options for 71000 shares of its $10 par value common stock to key employees.
The market price of the common stock on that date was $23 per share and the option price was $20. The Black-Scholes option pricing
model determined total compensation expense to be $636000. The options are exercisable beginning January 1, 2025, provided those
key employees are still in Wildhorse's employ at the time. The options expire on January 1, 2026.
The amount of compensation expense Wildhorse should record for 2024 under the fair value method is
O $0.
O $318000.
O $106000.
O $212000.
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