Current Attempt in ProgressOn January 1, 2021, Crane Company granted Sam Wine, an employee, an option to buy 1,000 shares of CraneCo. stock for $30 per share, the option exercisable for 5 years from date of grant. Using a fair value optionpricing model, total compensation expense is determined to be $5100. Wine exercised his option on October1, 2021 and sold his 1,000 shares on December 1, 2021. Quoted market prices of Crane Co. stock in 2021were:July 1October 1December 1$28 per share$34 per share$38 per shareThe service period is for three years beginning January 1, 2021. As a result of the option granted to Wine,using the fair value method, Crane should recognize compensation expense for 2021 on its books in theamount of$0.O $1700.$5100.O $1275.

Compensation is a cash payment made in exchange for services rendered. Compensation expenses…

The service period is for three years beginning January 1, 2021. As a result of the option granted to Wine, using the fair value method, Crane should recognize compensation expense for 2021 on its books in the amount of $0. $1700. O $5100. O$1275.

The service period is for three years beginning January 1, 2021. As a result of the option granted to Wine, using the fair value method, Crane should recognize compensation expense for 2021 on its books in the amount of $0. $1700. O $5100. O$1275.

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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