Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. american optical corporation provides a variety of

American Optical Corporation provides a variety of share-based compensation plans to its employees. Under its...

70.2K

Verified Solution

Question

Accounting

American Optical Corporation provides a variety of share-based compensation plans to its employees. Under its executive stock option plan, the company granted options on January 1, 2018, that permit executives to acquire 4 million of the companys $1 par common shares within the next five years, but not before December 31, 2019 (the vesting date). The exercise price is the market price of the shares on the date of grant, $14 per share. The fair value of the 4 million options, estimated by an appropriate option pricing model, is $3 per option. No forfeitures are anticipated. Ignore taxes. Required: 1. Determine the total compensation cost pertaining to the options. 2. to 4. Prepare the appropriate journal entries.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Geometry
1.2K views

The perimeter of triangle CDE is 88 Find the length of side CE and the...

Finance
1.2K views

Assume that today is December 31, 2018, and that the following information applies to Abner Airlines: After-tax...

Biology
1.2K views

The reasons that genetic diseases resulted from mitochondrial DNA mutation are only inherited from mother...

Biology
1.2K views

Directions Respond to the below developed response for each Pro margins double

Physics
1.2K views

When we see an object the image formed on th retina is 1 real 3...

Statistics
1.2K views

3 Assuming 40 of the students are full time employed with 99 level of confidence...

Statistics
1.2K views

A sample of 40 earthquake depths has a mean of 8 km Use a 0...

Accounting
1.2K views

Imagine that the construction of each room in a new hotel project will cost $118,000...

Accounting
1.2K views

Ignore income taxes in this problem.) The following data pertain to an investment project: ...

Accounting
1.2K views

Excel sheet: https://imgur.com/7UwGWL0 1. How do i find how many stores achieved a Tier 4...

Accounting
1.2K views

3-The self-driving car is a product in the __________ stage of the product life cycle....

Finance
1.2K views

Question 7 (0.5p): If you have debt in a foreign currency due in...