Test: CPA Financial Accounting and Reporting (FAR)

1.

On August 1, Year 1, the Webber Company issued stock options to all of its employees. A total of 50,000 options were distributed equally among its employees. On the date of issuance each option was priced at $2.25 and the employees were given until the end of August to convert their options. The option price was set at $63 and the market price on the date of issues was $66. All options were converted by August 31 when the market price of the stock was $68. What amount of expense should the Webber Company recognize in Year 1?

$150,000

$0

$112,500

$250,000

1/15 questions

0%
Learning Tools by Varsity Tutors