Question Details

(Solved) (Latest ver. Aug 2020) - Issuance, Exercise, and Termination of Stock Options

Brief item decscription

Item details:


On January 1, 2008, Titania Inc. granted stock options to officers and key employees for the purchase of 20,000 shares of the company's $10 par common atock at $25 per share. The options were exercisable within a 5 year period beginning Jan. 1, 2010, by grantees still in the employ of the company, and expiring Dec. 31, 2014. The service period for this award is 2 years. Assume that the fair value option-pricing model determines total compensation expense to be $350,000.

On April 1, 2009, 2,000 option shares were terminated when the employees resigned from the company. The market value of the common stock was $35 per share on this date.

On March 31, 2010, 12,000 option shares were exercised when the market value of the common stock was $40 per share.

Prepare journal entries using the fair value method to record issuance of the stock options, termination of the stock options, exercise of the stock options, and charges to compensation expense, for the years ended Dec. 31, 2008, 2009 & 2010.


About this question:

This question was answered on: Sep 16, 2020

PRICE: $11.5 (18.37 KB)

Buy this answer for only: $11.5

Pay using PayPal (No PayPal account Required) or your credit card. All your purchases are securely protected by PayPal.

Need a similar solution fast, written anew from scratch? Place your own custom order

We have top-notch tutors who can help you with your essay at a reasonable cost and then you can simply use that essay as a template to build your own arguments. This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student. New solution orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

Order Now