On January 1, 2016, Boeing granted 60,000 stock options to key members of its executive team....
On January 1, 2016, Boeing granted 60,000 stock options to key members of its executive team. Each option grants the executives the ability to purchase one share of Boeing’s common stock ($10 par value) at a price of $40 per share. The options were exercisable within a 2-year period beginning on January 1, 2018, as long as the executives remain an employee at Boeing until that date. It is assumed that the options were for services performed equally in 2016 and 2017. The Black-Scholes option pricing model determines total compensation expense to be $1,300,000. On January 1, 2018, the Boeing executives exercised 48,000 of their stock options. On that date, Boeing’s stock had a market price of $50 per share. The remaining 12,000 stock options lapsed on January 1, 2020 because of the decision not to exercise their options.
Required:
Prepare the necessary journal entries related to the stock option plan for the years 2016 through 2020.
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On January 1, 2016, Boeing granted 60,000 stock options to key
members of its executive team....
On January 1, 2016, Riverbed Corporation granted 10,300 options to key executives. Each option wows the...
On January 1, 2016, Riverbed Corporation granted 10,300 options to key executives. Each option wows the executive to purchase one share of Riverbed's $5 par valve common stock at a price of $20 per share. The options were exercisable within a 2-year period beginning January 1, 2018, if the grantee is still employed by the company at the time of the exercise. On the grant date, Riverbed's stock was trading at $26 per share, and a fair value option pricing...
On January 1, 2016, Metlock Corporation granted 10,300 options to key executives. Each option allows the...
On January 1, 2016, Metlock Corporation granted 10,300 options
to key executives. Each option allows the executive to purchase one
share of Metlock’s $5 par value common stock at a price of $21 per
share. The options were exercisable within a 2-year period
beginning January 1, 2018, if the grantee is still employed by the
company at the time of the exercise. On the grant date, Metlock’s
stock was trading at $26 per share, and a fair value option-pricing
model...
E16-12B (L03) (Issuance, Exercise, and Termination of Stock Options) On July 1, 2016, Hooker Financial Corporation...
E16-12B (L03) (Issuance, Exercise, and Termination of Stock Options) On July 1, 2016, Hooker Financial Corporation granted 50,000 options to key executives. Each option allows the executive to purchase one share of Hooker’s $1 par value com- mon stock at a price of $58 per share. The options were exercisable within a 2-year period beginning July 1, 2018, if the grantee is still employed by the company at the time of the exercise. On the grant date, Hooker’s stock was...
On January 1, 2019, Riverbed Corporation granted 11,000 options to key executives. Each option allows the...
On January 1, 2019, Riverbed Corporation granted 11,000 options to key executives. Each option allows the executive to purchase one share of Riverbed’s $5 par value common stock at a price of $19 per share. The options were exercisable within a 2-year period beginning January 1, 2021, if the grantee is still employed by the company at the time of the exercise. On the grant date, Riverbed’s stock was trading at $25 per share, and a fair value option-pricing model...
On January 1, 2016, EZ Inc. granted stock options to officers and key employees for the...
On January 1, 2016, EZ Inc. granted stock options to officers and key employees for the purchase of 250,000 shares of the company’s $1 par common stock at $86 per share. The options were exercisable within a 5-year period beginning January 1, 2018, by grantees still in the employ of the company, and expiring December 31, 2020. The service period for this award is 2 years. Assume that the fair value option pricing model determines total compensation expense to be...
3. On January 1, 2018, Norman Corporation granted compensatory stock options for 75,000 shares of its...
3. On January 1, 2018, Norman Corporation granted compensatory stock options for 75,000 shares of its $20 par value common stock to certain of its key employees. The market price of the common stock on that date was $36 per share and the option price was $30. The Black Scholes option pricing model determines total compensation expense to be $825.000 The options are exercisable beginning January 1, 2020, provided those key employees are still in Norman's employ at the time...
Current Attempt In Progress On January 1, 2019. Sheffield Corporation granted 10.200 options to key executives....
Current Attempt In Progress On January 1, 2019. Sheffield Corporation granted 10.200 options to key executives. Each option allows the executive to purchase one share of Sheffield's 55 par value common stock at a price of $19 per share. The options were exercisable within a 2-year period beginning January 1, 2021, the grantee is still employed by the company at the time of the exercise. On the grant date. Sheffield's stock was trading at 525 per share, and a fair...
On January 1, 2018, Hugh Morris Comedy Club (HMCC) granted 1.2 million stock options to key...
On January 1, 2018, Hugh Morris Comedy Club (HMCC) granted 1.2 million stock options to key executives exercisable for 1.2 million shares of the company’s common stock at $24 per share. The stock options are intended as compensation for the next three years. The options are exercisable within a four-year period beginning January 1, 2021, by the executives still in the employ of the company. No options were terminated during 2018. The market price of the common stock was $28...
On January 1, 2018, Hugh Morris Comedy Club (HMCC) granted 1.5 million stock options to key...
On January 1, 2018, Hugh Morris Comedy Club (HMCC) granted 1.5 million stock options to key executives exercisable for 1.5 million shares of the company’s common stock at $24 per share. The stock options are intended as compensation for the next three years. The options are exercisable within a four-year period beginning January 1, 2021, by the executives still in the employ of the company. No options were terminated during 2018. The market price of the common stock was $28...
On January 1, 2020, Sandhill Corp. granted stock options to its chief executive officer. This is...
On January 1, 2020, Sandhill Corp. granted stock options to its chief executive officer. This is the only stock option plan that Sandhill offers and the details are as follows: Option to purchase: 2,400 common shares Option price per share: $36.00 Fair value per common share on date of grant: $28.40 Stock option expiration: The earlier of eight years after issuance or the employee’s cessation of employment with Sandhill for any reason other than retirement Date when options are first...
On January 1, 2016, Riverbed Corporation granted 10,300 options to key executives. Each option wows the executive to purchase one share of Riverbed's $5 par valve common stock at a price of $20 per share. The options were exercisable within a 2-year period beginning January 1, 2018, if the grantee is still employed by the company at the time of the exercise. On the grant date, Riverbed's stock was trading at $26 per share, and a fair value option pricing...
On January 1, 2016, Metlock Corporation granted 10,300 options
to key executives. Each option allows the executive to purchase one
share of Metlock’s $5 par value common stock at a price of $21 per
share. The options were exercisable within a 2-year period
beginning January 1, 2018, if the grantee is still employed by the
company at the time of the exercise. On the grant date, Metlock’s
stock was trading at $26 per share, and a fair value option-pricing
model...
3. On January 1, 2018, Norman Corporation granted compensatory stock options for 75,000 shares of its $20 par value common stock to certain of its key employees. The market price of the common stock on that date was $36 per share and the option price was $30. The Black Scholes option pricing model determines total compensation expense to be $825.000 The options are exercisable beginning January 1, 2020, provided those key employees are still in Norman's employ at the time...
Current Attempt In Progress On January 1, 2019. Sheffield Corporation granted 10.200 options to key executives. Each option allows the executive to purchase one share of Sheffield's 55 par value common stock at a price of $19 per share. The options were exercisable within a 2-year period beginning January 1, 2021, the grantee is still employed by the company at the time of the exercise. On the grant date. Sheffield's stock was trading at 525 per share, and a fair...
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