(1) Under its executive stock option plan, National Corporation granted 15 million options on January...
90.2K
Verified Solution
Link Copied!
Question
Accounting
(1)
Under its executive stock option plan, National Corporation granted 15 million options on January 1, 2020, that permit executives to purchase 15 million of the companys $1 par common shares within the next eight years, but not before December 31, 2022 (the vesting date). The exercise price is the market price of the shares on the date of grant, $18 per share. The fair value of the options, estimated by an appropriate option pricing model, is $4 per option. No forfeitures were anticipated; however, unexpected turnover during 2021 cause the forfeiture of 5% of the stock options.
Ignoring taxes, what's the effect on earnings in 2022?
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!
