SMR Corp. granted 226,000 stock options to employees on 12/31/2019 as compensation over the next 3 years. The options had a strike price of $74 per share and market prices of $89 on 12/31/2020 and $85 on 12/31/2021. If they originally estimated the original fair value to be $2,260,000, how much compensation expense should they recognize on 12/31/2021, assuming that the options can only be used to purchase stock? (NIE 14) $904,000 O $2,486,000 O $753,333 O $3,390,000
SMR Corp. granted 226,000 stock options to employees on 12/31/2019 as compensation over the next 3 years. The options had a strike price of $74 per share and market prices of $89 on 12/31/2020 and $85 on 12/31/2021. If they originally estimated the original fair value to be $2,260,000, how much compensation expense should they recognize on 12/31/2021, assuming that the options can only be used to purchase stock? (NIE 14) $904,000 O $2,486,000 O $753,333 O $3,390,000
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 29P
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Transcribed Image Text:SMR Corp. granted 226,000 stock options to employees on 12/31/2019 as
compensation over the next 3 years. The options had a strike price of $74 per share and market
prices of $89 on 12/31/2020 and $85 on 12/31/2021. If they originally estimated the original fair
value to be $2,260,000, how much compensation expense should they recognize on 12/31/2021,
assuming that the options can only be used to purchase stock? (NIE 14)
$904,000
$2,486,000
O $753,333
০ $3,390,000
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