Under its executive stock option plan, National Corporation granted options on January 1, 2016, that permit executives to purchase 12 million of the company’s $1 par common shares within the next six years, but not before December 31, 2018 (the vesting date). The exercise price is the market price of the shares on the date of grant, $17 per share. The fair value of the options, estimated by an appropriate option pricing model, is $5 per option. No forfeitures are anticipated. Ignoring taxes, what is the total compensation cost pertaining to the stock options? What is the effect on earnings in the year after the options are granted to executives?

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A:

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A: As posted multiple subparts we are answering only first three sub parts kindly repost the unanswered…

Q: Under its executive stock option plan, National Corporation granted 10 million options on January 1,…

A:

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A: Journal entry:

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A:

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A:

Q: American Optical Corporation provides a variety of share-based compensation plans to its employees.…

A: Since the student has posted multiple requirements, we will answer the first three alone. thank you.

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A: Options are issued to the employees at a lesser price.

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A:

Employee Benefits

In an organization employees are the most important resource and most important asset. They can lead an organization to the sky or can be the reason for unsuccessful of business. Therefore, it is very much important that employees of an organization should be satisfied by the environment of the organization and most importantly with the salary, wages incentives, etc.