n June 30, 2017, Lux Corp., a public company, granted stock options to a select...
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Accounting
n June 30, 2017, Lux Corp., a public company, granted stock options
to a select group of employees. A total of 100,000 options were granted with an
exercise price of $18. The options vested on June 30, 2020, and expire on
December 31, 2021. The fair value of the stock options at the grant date was estimated
at $460,000.
At December 31, 2017, Lux corp estimated that 93% of the options would vest. This
estimate changed to 91% and 92% on December 31, 2018, and December 31, 2019,
respectively.
On June 30, 2020, a total of 91,800 options vested. On July 6, 2020, 25,000 options
were exercised when the stock was trading at a price of $32 per share.
Lux Corp has a December 31 year end.
Required:
Prepare all journal entries to record the above transactions, for the fiscal years 2017
through 2020.
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