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School
Southern New Hampshire University **We aren't endorsed by this school
Course
ACCOUNTING ACC 318
Subject
Finance
Date
Nov 5, 2023
Pages
1
Uploaded by ProfSummer14247 on coursehero.com
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Question 13 of 20 < > 1/1 View Policies Show Attempt History v Your answer is correct. On June 30, 2025, Oriole Corporation granted compensatory stock options for 25000 shares of its $24 par value common stock to certain of its key employees. The market price of the common stock on that date was $29 per share and the option price was $26. Using a fair value option pricing model, total compensation expense was determined to be $94000. The options are exercisable beginning January 1, 2027, providing those key employees are still in the employ of the company at the time the options are exercised. The options expire on June 30, 2028. On January 4, 2027, when the market price of the stock was $34 per share, all of the options were exercised. The service period is two years, beginning January 1, 2025. Using the fair value method, what amount of compensation expense will be recorded by Oriole Corporation for these options on December 31, 20257 $22032 $0 $47000 $94000 eTextbook and Media Attempts: 1 of 2 used
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