On 1/1/2013, a company grants 1,000 options to its CEO with an exercise price of $40 as compensation. The options vest after two years and expire after 10 years. The stock price is $40 on the grant date. The fair value of the options is $20 per share at the grant date. How much compensation expense for stock options will the company recognize in fiscal year 2013? $20,000 $40,000 $0 $10,000 $13,500 O O

On 1/1/2013, a company grants 1,000 options to its CEO with an exercise price of $40 as compensation. The options vest after two years and expire after 10 years. The stock price is $40 on the grant date. The fair value of the options is $20 per share at the grant date. How much compensation expense for stock options will the company recognize in fiscal year 2013? $20,000 $40,000 $0 $10,000 $13,500 O O

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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