On 5/5/2018, a CEO exercised 100 options to buy a company's stock at the $50 exercise price. The market price of the company's stock is $60 on that day. A company reissues treasury stock that originally cost $30 per share to provide the shares to the CEO. What is the correct journal entry for the May 2018 exercise of the stock options?

On 5/5/2018, a CEO exercised 100 options to buy a company's stock at the $50 exercise price. The market price of the company's stock is $60 on that day. A company reissues treasury stock that originally cost $30 per share to provide the shares to the CEO. What is the correct journal entry for the May 2018 exercise of the stock options?

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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