On January 1, 2025, Ivanhoe Company granted stock options to officers and key employees for the purchase of 19400 shares of the company's $1 par value common stock at $20 per share as additional compensation for services to be rendered over the next three years. The options are exercisable during a five year period beginning January 1, 2028 by grantees still employed by Ivanhoe. The Black-Scholes option-pricing model determined total compensation expense to be $188700. The market price of common stock was $26 per share at the date of grant. The journal entry to record the compensation expense related to these options for 2025 would include a credit to the Paid-in Capital Stock Options account for O $62900. O $37740. O $38800. to
On January 1, 2025, Ivanhoe Company granted stock options to officers and key employees for the purchase of 19400 shares of the company's $1 par value common stock at $20 per share as additional compensation for services to be rendered over the next three years. The options are exercisable during a five year period beginning January 1, 2028 by grantees still employed by Ivanhoe. The Black-Scholes option-pricing model determined total compensation expense to be $188700. The market price of common stock was $26 per share at the date of grant. The journal entry to record the compensation expense related to these options for 2025 would include a credit to the Paid-in Capital Stock Options account for O $62900. O $37740. O $38800. to
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 8RE: On January 2, 2019, Brust Corporation grants its new CFO 2,000 restricted share units. Each of the...
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Transcribed Image Text:On January 1, 2025, Ivanhoe Company granted stock options to officers and key employees for the purchase of 19400 shares of the
company's $1 par value common stock at $20 per share as additional compensation for services to be rendered over the next three
years. The options are exercisable during a five year period beginning January 1, 2028 by grantees still employed by Ivanhoe. The
Black-Scholes option-pricing model determined total compensation expense to be $188700. The market price of common stock was
$26 per share at the date of grant.
The journal entry to record the compensation expense related to these options for 2025 would include a credit to the Paid-in Capital-
Stock Options account for
$62900.
O $37740.
O $38800.
O $0.
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