On December 31,2024 . Crane Company granted some of its executives options to purchase 184000...
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On December 31,2024 . Crane Company granted some of its executives options to purchase 184000 shares of the company's $10 par common stock at an option price of $40 per share. The Black-Scholes option-pricing model determines total compensation expense to be $1341300. The options become exercisable on January 1,2025 and represent compensation for executives' services over a threeyear period beginning January 1, 2025. As of December 31,2025, none of the executives had exercised their options. If the fair value method is used, what is the impact on Crane's net income for the year ended December 31,2025 as a result of this transaction? $447100 decrease so $447100 increase $1341300 decrease
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