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Halo Company is a calendar-year U.S. firm with operations in several countries. At January 1, 2021,...

Halo Company is a calendar-year U.S. firm with operations in several countries. At January 1, 2021, the company had issued 41,300 executive stock options permitting executives to buy 41,300 shares of stock for $26. The vesting schedule is 20% the first year, 30% the second year, and 50% the third year (graded-vesting). The fair value of the options is estimated as follows:

Vesting Date Amount Vesting Fair Value per Option
Dec. 31, 2021 20 % $ 8
Dec. 31, 2022 30 % $ 9
Dec. 31, 2023 50 % $ 13


What is the compensation expense related to the options to be recorded in 2022?

rev: 03_30_2020_QC_CS-206085

Multiple Choice

  • $55,755.

  • $111,510.

  • $145,238.

  • $143,173.

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