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Under the fair value method, if an executive does not exercise a stock option and...

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Accounting

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Under the fair value method, if an executive does not exercise a stock option and it is allowed to lapse, the account - Paid-in Capital Share Options - is debited. What account is credited? Compensation Expense Deferred Compensation Additional Paid-In Capital from Expired Share Options Gain from Expired Share Options Under the par value method of accounting for treasury stock, the treasury stock is reported on the balance sheet as a deduction from contributed capital capital stock the sum of contributed capital, other comprehensive income, and retained earnings retained earnings

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