On January 1, 2020, XYZ Co. granted options to key executives to purchase 100,000 shares...
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Accounting
On January 1, 2020, XYZ Co. granted options to key executives to purchase 100,000 shares of the company's $10 par value Common Stock at an option price of $50 per share. The Black-Scholes option pricing model determines total compensation expense to be $750,000. The options become exercisable after a 2 year servic period from the date of grant. Assume all options were exercised in 2022 on the following dates: April 16, 2022 - 70,000 options were exercised when the market value per share was $63 September 4,202230,000 options were exercised when the market value per share was $72 Prepare a journal entry for: a) January 1,2020 b) December 31,2020 c) December 31,2021 d) April 16th,2022 e) September 4,2022
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