vrited On January 1, 2021, King's X Corp. granted stock options to officers and key employees for the purchase of 45,000 shares of the company's $10 par common stock at $27 per share. The options were exercisable within a 4-year period beginning January 1, 2026 by grantees still in the employ of the company, and had an expiration date of December 31, 2029. The vesting (service) period for this award was 5 years. Assume that a valid option pricing model determined the fair value of each option at the grant date to be $18. The fair market value of King's X stock on the grant date was $30 per share. On April 20, 2026, 32,000 options were exercised when the market price of the common stock was $42.50 per share. The remaining 13,000 options were never exercised.
vrited On January 1, 2021, King's X Corp. granted stock options to officers and key employees for the purchase of 45,000 shares of the company's $10 par common stock at $27 per share. The options were exercisable within a 4-year period beginning January 1, 2026 by grantees still in the employ of the company, and had an expiration date of December 31, 2029. The vesting (service) period for this award was 5 years. Assume that a valid option pricing model determined the fair value of each option at the grant date to be $18. The fair market value of King's X stock on the grant date was $30 per share. On April 20, 2026, 32,000 options were exercised when the market price of the common stock was $42.50 per share. The remaining 13,000 options were never exercised.
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
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 5MC: Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par...
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