CPA · Question 15 · Area II: Technical Accounting
A company issues 10,000 stock options to employees on Jan 1, Year 1. The options vest over 4 years (cliff vesting). The fair value of each option at grant date is $12. The exercise price is $50. The stock price at grant date is $50. At Dec 31, Year 1, the stock price is $55. What compensation expense should be recognized for Year 1?
Answer options:
$0
$30,000
$120,000
$12,500
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