Business, 12.08.2019 23:20 querty2400

On january 1, year 1, lord corp. granted stock options for 10,000 shares at $38 per share as additionalcompensation for services to be rendered over the next three years. using an acceptable option pricingmodel, lord calculated total compensation cost of $90,000. the options are exercisable during a 4-yearperiod beginning january 1, year 4, by grantees still employed by lord. market price of lord's stock was $47per share at the grant date. no stock options were terminated during year 1. in lord's year 1 incomestatement, what amount should be reported as compensation expense pertaining to the options? a. $90,000b. $40,000c. $30,000d. $0

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On january 1, year 1, lord corp. granted stock options for 10,000 shares at $38 per share as additio...