In connection with a stock option plan for the benefit of key employees, Ward Corp. intends to distribute treasury shares when the options are exercised. These shares were bought in 2010 at $42 per share. On January 1, 2011, Ward granted stock options for 10,000 shares at $38 per share as additional compensation for services to be rendered over the next three years. The options are exercisable during a four-year period beginning January 1, 2014, by grantees still employed by Ward. Market price of Ward’s stock was $47 per share at the grant date. The fair value of a similar stock option with the same terms was $12 at the grant date. No stock options were terminated during 2011. In Ward’s December 31, 2011 income statement, what amount should be reported as compensation expense pertaining to the options?

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Status NEW Posted 10 Dec 2017 03:12 PM My Price 10.00

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