On January 1, 2023, Swifty Corp. granted an employee an option to purchase 7200 of Swifty's no par value common shares at $50 per share. The Black-Scholes option pricing model determined total compensation expense to be $200000. The option became exercisable on December 31, 2024, after the employee completed two years of service. The market prices of Swifty's shares were as follows: January 1, 2023 December 31, 2024 $38 $52 For calendar 2024, Swifty should recognize compensation expense of O $86400. O $100000. O $360000. O $0.

On January 1, 2023, Swifty Corp. granted an employee an option to purchase 7200 of Swifty's no par value common shares at $50 per share. The Black-Scholes option pricing model determined total compensation expense to be $200000. The option became exercisable on December 31, 2024, after the employee completed two years of service. The market prices of Swifty's shares were as follows: January 1, 2023 December 31, 2024 $38 $52 For calendar 2024, Swifty should recognize compensation expense of O $86400. O $100000. O $360000. O $0.

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 17E

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