Walker, Incorporated uses stock options as a compensation incentive for its top executives. On January 1, Year 1, 25,000 options were granted, each giving the holder the right to acquire four $5 par common shares. The exercise price is $15 per share. Options vest on January 1, Year 5 and cannot be exercised before that date and will expire on December 31, Year 8.. The fair value of the 25,000
options, estimated by an appropriate option pricing model is $50 per option.
Refer to Walker Corporation. Make the journal entries to record the granting of the options and the compensation for Year 1.
What will be an ideal response?
Answer:
Deferred Compensation
1,250,000
APIC —Stock Options
1,250,000
Compensation Expense
312,500
Deferred Compensation
80,000
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___________ powers of a corporation - are found in its articles of incorporation. State statutes often give corporations a wide variety powers, allowing a corporation to issue stocks and bonds, execute contracts and negotiable instruments, buy and sell property, pay employee benefits, and make charitable contributions.
Fill in the blank(s) with the appropriate word(s).
Behavioral learning theories assume that ________
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