The stockholders of Meadow Corp. approved a stock-option plan that grants the company's top three executives options to purchase a maximum of 1,000 shares each of Meadow's $2 par common stock for $19 per share. The options were granted on January 1 when the fair value of the stock was $20 per share. Meadow determined that the fair value of the compensation is $300,000 and the vesting period is three years. What amount of compensation expense from the options should Meadow record in the year the options were granted? O $20,000 O $100,000 O $300,000 O $60,000
The stockholders of Meadow Corp. approved a stock-option plan that grants the company's top three executives options to purchase a maximum of 1,000 shares each of Meadow's $2 par common stock for $19 per share. The options were granted on January 1 when the fair value of the stock was $20 per share. Meadow determined that the fair value of the compensation is $300,000 and the vesting period is three years. What amount of compensation expense from the options should Meadow record in the year the options were granted? O $20,000 O $100,000 O $300,000 O $60,000
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 7E
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Transcribed Image Text:The stockholders of Meadow Corp. approved a stock-option plan that grants the company's top three executives options to purchase a
maximum of 1,000 shares each of Meadow's $2 par common stock for $19 per share. The options were granted on January 1 when the
fair value of the stock was $20 per share. Meadow determined that the fair value of the compensation is $300,000 and the vesting
period is three years. What amount of compensation expense from the options should Meadow record in the year the options were
granted?
O $20,000
O $100,000
O $300,000
O $60,000
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