On January 1, 2021, Crane Company granted stock options to officers and key employees for the purchase of 18000 shares of the company's $1 par common stock at $18 per share as additional compensation for services to be rendered over the next three years. The options are exercisable during a five-year period beginning January 1, 2024 by grantees still employed by Crane. The Black-Scholes option pricing model determines total compensation expense to be $180300. The market price of common stock was $24 per share at the date of grant. The journal entry to record the compensation expense related to these options for 2021 would include a credit to the Paid-in Capital-Stock Options account for O $0. O $36060. O $60100. O $32400.
On January 1, 2021, Crane Company granted stock options to officers and key employees for the purchase of 18000 shares of the company's $1 par common stock at $18 per share as additional compensation for services to be rendered over the next three years. The options are exercisable during a five-year period beginning January 1, 2024 by grantees still employed by Crane. The Black-Scholes option pricing model determines total compensation expense to be $180300. The market price of common stock was $24 per share at the date of grant. The journal entry to record the compensation expense related to these options for 2021 would include a credit to the Paid-in Capital-Stock Options account for O $0. O $36060. O $60100. O $32400.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter15: Contributed Capital
Section: Chapter Questions
Problem 7E
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Question
![On January 1, 2021, Crane Company granted stock options to officers and key employees for the
purchase of 18000 shares of the company's $1 par common stock at $18 per share as additional
compensation for services to be rendered over the next three years. The options are exercisable
during a five-year period beginning January 1,2024 by grantees still employed by Crane. The
Black-Scholes option pricing model determines total compensation expense to be $180300. The
market price of common stock was $24 per share at the date of grant. The journal entry to record
the compensation expense related to these options for 2021 would include a credit to the Paid-in
Capital-Stock Options account for
O $0.
O $36060.
O $60100.
O $32400.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2cd05eb9-d4fb-47d4-a045-424c40c5ae8e%2F5898dbff-3324-4e58-b176-37dbd1bed28b%2Fozmz0tr_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On January 1, 2021, Crane Company granted stock options to officers and key employees for the
purchase of 18000 shares of the company's $1 par common stock at $18 per share as additional
compensation for services to be rendered over the next three years. The options are exercisable
during a five-year period beginning January 1,2024 by grantees still employed by Crane. The
Black-Scholes option pricing model determines total compensation expense to be $180300. The
market price of common stock was $24 per share at the date of grant. The journal entry to record
the compensation expense related to these options for 2021 would include a credit to the Paid-in
Capital-Stock Options account for
O $0.
O $36060.
O $60100.
O $32400.
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