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fabuleux_liz fabuleux_liz
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6 years ago
JKC initiated a stock option plan for its three top executives. The plan provided that each
executive would receive 6,000 options that would enable each one to purchase 600 shares at the
option price.
The option price was set at 10 percent below market price at the first exercise date. The options
could be exercised after the executives remained as employees of the company for 3 more years.
The market price of the shares on the date that the options were granted was $10 per share. The
amount of compensation expense the company incurred for the three executives due to the option
plan was:
A) $8,100
B) $3,000
C) $600
D) $0
E) Cannot be determined from the information provided.
Textbook 
Intermediate Accounting, Volume 2

Intermediate Accounting, Volume 2


Edition: 5th
Authors:
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twylla01twylla01
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6 years ago
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fabuleux_liz Author
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#2
6 years ago
You are really SMART. TY!
wrote...
#3
6 years ago
np
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