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Question: On July 18, 2014, Amos Corporation granted nontransferable options to certain key employees as additional compensation. The options permit the purchase of 20,000 shares of Amos's common stock at a price of $30 per share. On the grant date, the stock's market value was $42 per share. The options were exercisable beginning January 1, 2015, and expire on December 31, 2018. On February 3, 2015, when the stock was selling for $45 per share, all options were exercised.

Required: How much compensation expense should Amos have recorded in 2014 and 2015 if the options are worth $17 per share on the grant date?

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Category:- Basic Finance
Reference No.:- M92600711

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