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Business, 05.10.2019 02:20 starlightmoon213

On december 31, 2014, gonzalez company granted some of its executives options to purchase 150,000 shares of the company’s $10 par common stock at an option price of $50 per share. the black-scholes option pricing model determines total compensation expense to be $1,125,000. the options become exercisable on january 1, 2015, and represent compensation for executives’ services over a three-year period beginning january 1, 2015. at december 31, 2015 none of the executives had exercised their options. what is the impact on gonzalez’s net income for the year ended december 31, 2015 as a result of this transaction under the fair value method?

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