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  3. on january 1, 2025, blossom company granted sarah

On January 1, 2025, Blossom Company granted Sarah Allen... On January 1, 2025, Blossom...

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Accounting

imageOn January 1, 2025, Blossom Company granted Sarah Allen...

On January 1, 2025, Blossom Company granted Sarah Allen, an employee, an option to buy 4900 shares of Blossom Co. stock for $25 per share, with the option exercisable for 5 years from the date of grant. Using a fair value option pricing model, total compensation expense was determined to be $38700. Allen exercised her option on September 1, 2025 and sold her 4900 shares on December 1 , 2025. Quoted market prices of Blossom Co. stock during 2025 were as follows: The service period is three years, beginning January 1, 2025. As a result of the option granted to Allen, using the fair value method, Blossom should recognize compensation expense for 2025 in the amount of $12900.$10300.$38700$49000

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