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Multiple Choice On January 1, 2024, Jingrong Corporation granted stock options to key employees for the purchase of 88,000 shares of the company's common stock at $21 per share. The options are intended to compensate employees for the next two years. The options are exercisable within a four-year period beginning January 1, 2026, by the grantees still in the employ of the company. No options were terminated during 2024, but the company does have an experience of 5% forfeitures over the life of the stock options. The market price of the common stock was $27 per share at the date of the grant. Jingrong Corporation used the Binomial pricing model and estimated the fair value of each of the options at $8. What amount should Jingrong charge to compensation expense for the year ended December 31, 2024? O $352,000 $704,000 $334,400 $668 800 < Prev 17 7 Save & Exit Next > Submit

Multiple Choice On January 1, 2024, Jingrong Corporation granted stock options to key employees for the purchase of 88,000 shares of the company's common stock at $21 per share. The options are intended to compensate employees for the next two years. The options are exercisable within a four-year period beginning January 1, 2026, by the grantees still in the employ of the company. No options were terminated during 2024, but the company does have an experience of 5% forfeitures over the life of the stock options. The market price of the common stock was $27 per share at the date of the grant. Jingrong Corporation used the Binomial pricing model and estimated the fair value of each of the options at $8. What amount should Jingrong charge to compensation expense for the year ended December 31, 2024? O $352,000 $704,000 $334,400 $668 800 < Prev 17 7 Save & Exit Next > Submit

FINANCIAL ACCOUNTING
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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Multiple Choice On January 1, 2024, Jingrong Corporation granted stock options to key employees for the purchase of 88,000 shares of the company's common stock at $21 per share. The options are intended to compensate employees for the next two years. The options are exercisable within a four-year period beginning January 1, 2026, by the grantees still in the employ of the company. No options were terminated during 2024, but the company does have an experience of 5% forfeitures over the life of the stock options. The market price of the common stock was $27 per share at the date of the grant. Jingrong Corporation used the Binomial pricing model and estimated the fair value of each of the options at $8. What amount should Jingrong charge to compensation expense for the year ended December 31, 2024? O $352,000 $704,000 $334,400 $668 800 < Prav 17 of 37 Save & Exit Next > Submit
Transcribed Image Text:Multiple Choice On January 1, 2024, Jingrong Corporation granted stock options to key employees for the purchase of 88,000 shares of the company's common stock at $21 per share. The options are intended to compensate employees for the next two years. The options are exercisable within a four-year period beginning January 1, 2026, by the grantees still in the employ of the company. No options were terminated during 2024, but the company does have an experience of 5% forfeitures over the life of the stock options. The market price of the common stock was $27 per share at the date of the grant. Jingrong Corporation used the Binomial pricing model and estimated the fair value of each of the options at $8. What amount should Jingrong charge to compensation expense for the year ended December 31, 2024? O $352,000 $704,000 $334,400 $668 800 < Prav 17 of 37 Save & Exit Next > Submit
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