Business, 15.08.2020 01:01 kl8774

On June 1, year 2, Oak Corp. granted stock options to certain key employees as additional compensation. The options were for 1,000 shares of Oak's $2 par value common stock at an option price of $15 per share. Market price of this stock on June 1, year 2, was $20 per share. The options were exercisable beginning January 2, year 3, and expire on December 31, year 4. On April 1, year 3, when Oak's stock was trading at $21 per share, all the options were exercised. Oak uses the intrinsic method of accounting for stock option plans. What amount of pretax compensation should Oak report in year 2 in connection with the options

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On June 1, year 2, Oak Corp. granted stock options to certain key employees as additional compensati...