November 1, 2022, Crane Corp. adopted a stock option plan that granted options to key executives to purchase 49 ares. The options were granted on January 2, 2023, and were exercisable two years after the date of grant if the gra mpany employee; the options expire six years from the date of grant. The option price was set at $37, and total com pense was estimated to be $522,000. Note that the calculation did not take forfeitures into account. April 1, 2024, 3,900 options were terminated when some employees resigned from the company. The fair value of at date was $25. All of the remaining options were exercised during the year 2025: 34,900 on January 3 when the fa d 11,000 on May 1 when the fair value was $53 a share. Assume that the entity follows ASPE and has chosen not to feitures in its upfront estimate of compensation expense.
November 1, 2022, Crane Corp. adopted a stock option plan that granted options to key executives to purchase 49 ares. The options were granted on January 2, 2023, and were exercisable two years after the date of grant if the gra mpany employee; the options expire six years from the date of grant. The option price was set at $37, and total com pense was estimated to be $522,000. Note that the calculation did not take forfeitures into account. April 1, 2024, 3,900 options were terminated when some employees resigned from the company. The fair value of at date was $25. All of the remaining options were exercised during the year 2025: 34,900 on January 3 when the fa d 11,000 on May 1 when the fair value was $53 a share. Assume that the entity follows ASPE and has chosen not to feitures in its upfront estimate of compensation expense.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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