The option price is 25 per share and the option has a fair, Ask an Expert

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On January 1, 2010, Wilson Corporation granted Emelia Walker, its president, a compensatory stock option plan to purchase 8,000 shares of Wilson's $10 par common stock. The option price is $25 per share and the option has a fair value of $7 per option, which is exercisable on January 1, 2014, after four years of service. How much compensation expense should Wilson recognize on December 31, 2010?

a) $0

b) $14,000

c) $56,000

d) $80,000

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Accounting Basics, Accounting

Category:- Accounting Basics
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