Moonlnc. granted their executives incentive stock options on January 1, 2017. On this date, 275,000 shares of the company's $5 par value common stock were granted at an option price of $40 per share. On the grant date, the market price of the stock was $50 per share. Market prices of the stock were as follows: December 31, 2018 December 31, 2019 The Black-Scholes option pricing model determines total compensation expense to be $1,500,000. The service period for the options is 2 years. The options were exercisable beginning on January 1, 2025 for employees still working at Mooninc. The options expire on December 31, 2029. What journal entry should the company make on January 1, 2023 under the fair value method? On June 1, 2025, 68,750 options were exercised and the market price on this date was $75. What amount should be debited to Paid-in Capital - Stock Options? a)$375,000 b)$750,000 c)$0.00 d)$1,656,250 $70 per share $82 per share

Moonlnc. granted their executives incentive stock options on January 1, 2017. On this date, 275,000 shares of the company's $5 par value common stock were granted at an option price of $40 per share. On the grant date, the market price of the stock was $50 per share. Market prices of the stock were as follows: December 31, 2018 December 31, 2019 The Black-Scholes option pricing model determines total compensation expense to be $1,500,000. The service period for the options is 2 years. The options were exercisable beginning on January 1, 2025 for employees still working at Mooninc. The options expire on December 31, 2029. What journal entry should the company make on January 1, 2023 under the fair value method? On June 1, 2025, 68,750 options were exercised and the market price on this date was $75. What amount should be debited to Paid-in Capital - Stock Options? a)$375,000 b)$750,000 c)$0.00 d)$1,656,250 $70 per share $82 per share

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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36. Subject : - Accounting
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