On 1/1/18, ABC Corp. granted employees 200,000 stock options. Additional information is presented below: Option Price $ 30 per share Share Price...

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Accounting

On 1/1/18, ABCCorp. granted employees 200,000 stock options. Additionalinformation is presented below:
Option Price $                    30 per share
Share Price on 1/1/18 $                    30 per share
Par Value of Stock $                      1 per share
Option Value on 1/1/18 $900,000
Vesting/Service Period 3 years
Expiration Date 12/31/2022
On 1/1/20, employees holding20,000 options resigned from the company, thus forfeiting theiroptions.
On 1/1/22, 60,000 options wereexercised when the market price was $45/share.
On 12/31/22, the remaining options expired.
1) Provide the journal entry on 1/1/18.
2) Provide the journal entry to be made on both 12/31/18 and12/31/19.
3) Determine the amount of compensation expense to be reportedin 2020.

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4.4 Ratings (622 Votes)

1 Provide the journal entry on 1118 No entry is required in the Grant Date 2 Provide the journal entry to be made on both 123118 and 123119 Date Account Description Debit Credit 31Dec18 Compensation Expenses See Answer

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On 1/1/18, ABC Corp. granted employees 200,000 stock options. Additional information is presented below: Option Price $ 30 per share Share Price...

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Accounting

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On 1/1/18, ABCCorp. granted employees 200,000 stock options. Additionalinformation is presented below:

Option Price	$ 30	per share
Share Price on 1/1/18	$ 30	per share
Par Value of Stock	$ 1	per share
Option Value on 1/1/18	$900,000
Vesting/Service Period	3	years
Expiration Date	12/31/2022

On 1/1/20, employees holding20,000 options resigned from the company, thus forfeiting theiroptions.
On 1/1/22, 60,000 options wereexercised when the market price was $45/share.
On 12/31/22, the remaining options expired. 1) Provide the journal entry on 1/1/18. 2) Provide the journal entry to be made on both 12/31/18 and12/31/19. 3) Determine the amount of compensation expense to be reportedin 2020.