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Home Q & A Board Other Fields Homework Help Business Accounting
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Meesh1234 Meesh1234
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6 years ago
Schmidt Electronics offered an incentive stock plan to its employees. On January 1, Year 1, options were granted for 80,000 $1 par common shares. The exercise price equals the $6 market price of the common stock on the grant date. The options cannot be exercised before January 1, Year 4, and expire on December 31, Year 5. Each option has a value of $3 based upon an option pricing model.

What is the entry to record the expiration of 15% of the options on December 31, Year 5?

A)
APICStock Options36,000
    APICExpired Stock Options36,000

B)
APICStock Options36,000
    Retained Earnings36,000

C)
APICStock Options36,000
    Compensation Expense36,000

D)
Stock Options Receivable60,000
    Common Stock20,000
    APIC40,000
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Intermediate Accounting

Intermediate Accounting


Edition: 1st
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Lourd J.Lourd J.
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6 years ago
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Meesh1234 Author
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#2
6 years ago
Genius!!!!!!
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