PLEASE SHOW ALL WORK AND EXPLAIN On January 1, 2016, Fox Company granted 79,875 stock...
60.1K
Verified Solution
Link Copied!
Question
Accounting
PLEASE SHOW ALL WORK AND EXPLAIN
On January 1, 2016, Fox Company granted 79,875 stock options to certain executives. The options are exercisable no sooner than December 31, 2018, and expire on January 1, 2022. Each option can be exercised to acquire one share of $2 par common stock for $7. An option-pricing model estimates the fair value of the options to be $4 on the date of grant. Suppose on January 1, 2019 40%of the options are exercised when the market price of the shares is $13 each. What is the debit to PIC -stock options?
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!
