E16-11 - 200,000.00 Paid-in-capital - stock options...

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E16-11 GIVEN: 1/1/2010: stock options granted to key employees and officers for the purchase of 20,00 shares of $10 par common stock at $25/share the options are exercisable within a 5-year period beginning 1/1/12, by grantees still in employ of the company, expiring 12/31/16 the service period for the award is 2 years fair-value option pricing model determines total compensation expense at $400,000 4/1/2011: 3,000 options terminated when employees resigned. FMV of stock was $35/sh on this date 3/31/2012: 12,000 options exrcised when market value of common stock was $40/share JEs: Issuance 1/1/2010 no entry Compensation Expense 12/31/2010 Compensation Expense
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Unformatted text preview: 200,000.00 Paid-in-capital - stock options 200,000.00 ($400,000/2 years service period) 12/31/2011 Compensation Expense 170,000.00 Paid-in-capital - stock options 170,000.00 ($400,000*1/2*17/20) Termination 4/1/2011 Paid-in-capital - stock options 30,000.00 Compensation Expense 30,000.00 (3,000/20,000 = 15%) (200,000 * 15% = 30,000) Exercise 3/31/2012 Cash 300,000.00 Paid-in-capital - stock options 240,000.00 Common stock 120,000.00 Paid-in-capital in excess of par 420,000.00 (12,000 * 25 = 300,000) (12,000/20,000 = 60%) (60% * 400,000 = 240,000) (12,000 * 10 = 120,000) (300,000 + 240,000 - 120,000 = 420,000) 00 hare e...
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E16-11 - 200,000.00 Paid-in-capital - stock options...

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