On January 1, 2023, Cullumber Corp. granted stock options to its chief executive officer. This is the only stock option plan that Cullumber offers and the details are as follows: Option to purchase: Option price per share: Fair value per common share on date of grant: Stock option expiration: Date when options are first exercisable: 2,600 common shares $38.00 $31.10 The earlier of eight years after issuance or the employee's cessation of employment with Cullumber for any reason other than retirement The earlier of four years after issuance or the date on which the employee reaches the retirement age of 65 Fair value of options on date of grant: $7.00 On January 1, 2028, 2,080 of the options were exercised when the fair value of the common shares was $41. The remaining stock options were allowed to expire. The CEO remained with the company throughout the period.
On January 1, 2023, Cullumber Corp. granted stock options to its chief executive officer. This is the only stock option plan that Cullumber offers and the details are as follows: Option to purchase: Option price per share: Fair value per common share on date of grant: Stock option expiration: Date when options are first exercisable: 2,600 common shares $38.00 $31.10 The earlier of eight years after issuance or the employee's cessation of employment with Cullumber for any reason other than retirement The earlier of four years after issuance or the date on which the employee reaches the retirement age of 65 Fair value of options on date of grant: $7.00 On January 1, 2028, 2,080 of the options were exercised when the fair value of the common shares was $41. The remaining stock options were allowed to expire. The CEO remained with the company throughout the period.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Give me the journal Entry
Transcribed Image Text:On January 1, 2023, Cullumber Corp. granted stock options to its chief executive officer. This is the only stock option plan that
Cullumber offers and the details are as follows:
Option to purchase:
Option price per share:
Fair value per common share on date of grant:
Stock option expiration:
Date when options are first exercisable:
2,600 common shares
$38.00
$31.10
The earlier of eight years after issuance or the employee's cessation
of employment with Cullumber for any reason other than retirement
The earlier of four years after issuance or the date on which
the employee reaches the retirement age of 65
Fair value of options on date of grant:
$7.00
On January 1, 2028, 2,080 of the options were exercised when the fair value of the common shares was $41. The remaining stock
options were allowed to expire. The CEO remained with the company throughout the period.
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