Under its executive stock option plan, National Corporation granted 12 million options on January 1, 2024, that permit executives to purchase 12 million of the company's $1 par common shares within the next six years, but not before December 31, 2026 (the vesting date). The exercise price is the market price of the shares on the date of grant, $17 per share. The fair value of the options, estimated by an appropriate option pricing model, is $5 per option. Suppose that the options expire without being exercised. Ignoring taxes, what journal entry will National record? Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10). View transaction list Journal entry worksheet 1 Record entry for the options that expired without being exercised. Note: Enter debits before credits. Event 1 General Journal Debit Credit Record entry Clear entry View general journal
Under its executive stock option plan, National Corporation granted 12 million options on January 1, 2024, that permit executives to purchase 12 million of the company's $1 par common shares within the next six years, but not before December 31, 2026 (the vesting date). The exercise price is the market price of the shares on the date of grant, $17 per share. The fair value of the options, estimated by an appropriate option pricing model, is $5 per option. Suppose that the options expire without being exercised. Ignoring taxes, what journal entry will National record? Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10). View transaction list Journal entry worksheet 1 Record entry for the options that expired without being exercised. Note: Enter debits before credits. Event 1 General Journal Debit Credit Record entry Clear entry View general journal
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Vishnu

Transcribed Image Text:Under its executive stock option plan, National Corporation granted 12 million options on January 1, 2024, that permit executives to
purchase 12 million of the company's $1 par common shares within the next six years, but not before December 31, 2026 (the vesting
date). The exercise price is the market price of the shares on the date of grant, $17 per share. The fair value of the options, estimated
by an appropriate option pricing model, is $5 per option. Suppose that the options expire without being exercised.
Ignoring taxes, what journal entry will National record?
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers
in millions (i.e., 10,000,000 should be entered as 10).
View transaction list
Journal entry worksheet
1
Record entry for the options that expired without being exercised.
Note: Enter debits before credits.
Event
1
General Journal
Debit
Credit
Record entry
Clear entry
View general journal
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