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At January 1, 2016, Naylor-Shaun Company had issued 40,000 executive stock options permitting executives to buy 40,000 s
Posted: Mon Apr 25, 2022 7:57 am
by answerhappygod
- At January 1 2016 Naylor Shaun Company Had Issued 40 000 Executive Stock Options Permitting Executives To Buy 40 000 S 1 (32.51 KiB) Viewed 18 times
At January 1, 2016, Naylor-Shaun
Company had issued 40,000 executive stock options permitting executives to buy 40,000 shares of stock for $30. The vesting schedule is 20% the first year, 30% the second year, and 50% the third year (graded-vesting). The fair value of the options is estimated as follows: Vesting Amount Fair Value Date Vesting per Option Dec. 31, 2016 20% $ 7 Dec. 31, 2017 30% $ 8 Dec. 31, 2018 50% $12 Assuming Naylor-Shaun prepares its financial statements in accordance with International Financial Reporting Standards, what is the compensation expense related to the options to be recorded in 2017? a. $ 48,000 b. $ 96,000 c. $128,000 d. $130,667