Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. under its executive stock option plan, national co

Under its executive stock option plan, National Corporation granted 30 million options on January 1,...

70.2K

Verified Solution

Question

Accounting

image

Under its executive stock option plan, National Corporation granted 30 million options on January 1, 2021, that permit executives to purchase 30 million of the company's $1 par common shares within the next six years, but not before December 31, 2023 (the vesting date). The exercise price is the market price of the shares on the date of grant, $30 per share. The falr value of the options, estimated by an approprlate option pricing model, is $2 per option. Suppose that the options are exercised on April 3, 2024, when the market price is $34 per share. lgnoring taxes, what journal entry will National record? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (Le., 10,000,000 should be entered as 10.) View transaction et Journal entry worksheet Record entry for options exercised on April 3, 2024, when the market price is 532 per share General Journal Debit Credit Apsi 09.2024 Racord entry Clear entry Mew general Tournal

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

Electrical Engineering
1.2K views

Problem 1 ( answer all questions ) a. How does a dc-motor torque-speed characteristic behave when...

Biology
1.2K views

Why can net exports be a negative number The amount of goods exported from the...

Physics
1.2K views

i The potential energy of a particle in a force field is where A and...

Statistics
1.2K views

Two health insurance compete for the business of 1000 customers Assume that each customer chooses...

Calculus
1.2K views

Consider the following equation y 9e x Find y x y x Find an equation...

Calculus
1.2K views

A circle has a central angle of 6 radians that intersects an arc of length...

Calculus
1.2K views

2 Determine whether the series a Converges b 5 32 converges or diverges Diverges

Accounting
1.2K views

please show all work in calculation and words and ezplain if this is a decrease...

Accounting
1.2K views

QUESTION 1 Which account should be used to make a rent payment for a company's...

Accounting
1.2K views

The ink-jet printing division of Vericom Printing has grown tremendously in recent years. Assume the...

Accounting
1.2K views

i'm getting stuck and confusing myself with the numbers please help! ...

Accounting
1.2K views

Multiple Choice Question When the stockholders receive a dividend, how would this affect the equity...