On January 1, 2021, Cullumber Inc. granted stock options to officers and key employees for the purchase of 21,000 shares of the company's $10 par common stock at $25 per share. The options were exercisable within a 5-year period beginning January 1, 2023, by grantees still in the employ of the company, and expiring December 31, 2027. The service period for this award is 2 years. Assume that the fair value option-pricing model determines total compensation expense to be $328,400. On April 1, 2022, 2,100 options were terminated when the employees resigned from the company. The market price of the common stock was $36 per share on this date. On March 31, 2023, 12,600 options were exercised when the market price of the common stock was $40 per share. Prepare journal entries to record issuance of the stock options, termination of the stock options, exercise of the stock options, and charges to compensation expense, for the years ended December 31, 2021, 2022, and 2023.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “On January 1, 2021, Cullumber Inc. granted stock options to officers and key employees for the purchase of 21,000 shares of the company's ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
When workers go out on a strike not approved by the union, the strike is called a?
Answers (1)
The price of gasoline is generally higher in Hawaii than in the continental United States. Therefore, the Hawaiian legislature passed a law forbidding gas stations from charging a price higher than the average price of gas on the West Coast of the
Answers (1)
cost of goods sold $212,000 rent expense $32,000freight out $7,000 sales discounts 8,000insurance expense 6,000 sales returns and allowances 13,000salaries and wages expense 58,000 sales revenue 380,000prepare multistep income statement and find
Answers (1)
Fernando was thrilled to find out that his company had just decided to invest a great deal of money in the product he was managing.
Answers (1)
ABC Company keeps their accounting records on the cash basis. During the year, ABC received $260,000 from clients, and ABC paid $85,000 to cover operating expenses.
Answers (1)
New Questions in Business
All of the following food safety hazards can cause food to become unsafe for human consumption, except for: Biological Chemical Metaphysical Physical
Answers (1)
How have technological advancements in knitting affected fabric production? A. by increasing the use of yarn B. by increasing the cost of production C. by increasing design possibilities D. by improving fabric quality E.
Answers (1)
A country that has multinational corporations is most likely to be
Answers (2)
If a tree grew more than 3 feet during the year, how much more likely is it that the tree was at most 50 yards from the river?
Answers (2)
An HP-10BII can solve problems with up to 15 beginning-of-year cash flows when there are no consecutive equal cash flows. True / False.
Answers (1)