Price Farms granted 290,000 stock options to its employees.The options expire 45 years after the grant date of January 1,2016,when the share price was $23.Employees still employed by Price five years after the grant date may exercise the option to purchase shares at $45 each;that is,the options vest to the employees after five years.A consultant estimated the value of each option at the date of grant to be $1.50 each.
Required:
Record the journal entries relating to the issuance of stock options.

Question

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The Answer of Price Farms granted 290,000 stock options to its employees.The options expire 45 years after the grant date of January 1,2016,when the share price was $23.Employees still employed by Price five years after the grant date may exercise the option to purchase shares at $45 each;that is,the options vest to the employees after five years.A consultant estimated the value of each option at the date of grant to be $1.50 each.
Required:
Record the journal entries relating to the issuance of stock options.

Price Farms Granted 290,000 Stock Options to Its Employees