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TB MC Qu. 19-37 (Algo) Wall Drugs offered an incentive stock option... Wall...

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Accounting

TB MC Qu. 19-37 (Algo) Wall Drugs offered an incentive stock option...

Wall Drugs offered an incentive stock option plan to its employees. On January 1, 2021, options were granted for 75,000 $1 par common shares. The exercise price equals the $5 market price of the common stock on the grant date. The options cannot be exercised before January 1, 2024, and expire December 31, 2025. Each option has a fair value of $1 based on an option pricing model. Which is the correct entry to record compensation expense for the year 2021?

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