If the options have a vesting period of five years,what would be the balance in "Paid-in Capital-Stock Options" three years after the grant date?
A)A credit of $4.8 million.
B)A credit of $16.2 million.
C)A debit of $4.8 million.
D)A debit of $16.2 million.

Question

Quizplus · Accepted Answer

The balance in "Paid-in Capital-Stock Options" would be a credit of $4.8 million, as the options vest over five years, and three years have passed, so 3/5 of the total expense is recognized.

If the Options Have a Vesting Period of Five Years,what