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 options on January 1, 2016, that...

80.2K

Verified Solution

Question

Accounting

image
Under its executive stock option plan, National Corporation granted options on January 1, 2016, that permit executives to purchase 12 million of the company's $1 par common shares within the next six years, but not before December 31, 2018 (the vesting date). The exercise price is the market price of the shares on the date of grant, $16 per share. The fair value of the options, estimated by an appropriate option pricing model, is $4 per option. Suppose that the options expire without being exercised. Ignoring 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 (i.e., 10,000,000 should be entered as 10). View transaction list Journal entry worksheet Record entry for the options that expired without being exercised. Note: Enter debits before credits. Event General Journal Debit Credit Record entry Clear entry View general journal

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