36 million stock options to purchase $1 par common shares were granted on January 1, 2021. The exercise price is $10 and the fair value is $1. Options vest on January 1, 2023, and expire December 31, 2027. Required: 1. Calculate total compensation cost. 2. to 5. Record compensation expense on December 31, 2021 and 2022. Also record the exercise of 75% of the options on March 12, 2023, when the market price is $11 per share, and the entry on December 31, 2027, when the remaining options expire.
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36 million stock options to purchase $1 par common shares were granted on January 1, 2021. The exerc...
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