O'Neil Manufacturing issued 200,000 stock options to its employees.The company granted the stock options at-the-money,when the share price was $40.These options have no vesting conditions.By year-end,the share price had increased to $42.O'Neil's management estimates the value of these options at the grant date to be $1.75 each.
Requirement:
Record the issuance of the stock options.

Question

Quizplus · Accepted Answer

The Answer of O'Neil Manufacturing issued 200,000 stock options to its employees.The company granted the stock options at-the-money,when the share price was $40.These options have no vesting conditions.By year-end,the share price had increased to $42.O'Neil's management estimates the value of these options at the grant date to be $1.75 each.
Requirement:
Record the issuance of the stock options.

O'Neil Manufacturing Issued 200,000 Stock Options to Its Employees