微信扫一扫
实时资讯全掌握
| On January 1, year 2, Karva Company granted James Dean, the president, an option to purchase 1,000 shares of Karva’s $30 par value common stock at $40 per share. The option becomes exercisable on January 1, year 4, after Dean has completed 2 years of service. Assume that the fair value at the grant date of Karva’s options with similar terms and conditions is $15. As a result of the option granted to Dean, Karva should recognize compensation expense in year 2 of A. $ 7,500 B. $0 C. $15,000 D. $ 5,000 |