Respuesta :
Answer:
$300,000
Explanation:
Option expenses to be recognized in the first year ,
= [tex]\frac{N\ *\ FV}{Total\ vesting\ period}[/tex]   ×  period elapsed  - Expenses already recognized
wherein N = No of options expected to be vested
       FV = Fair value on the grant date
       Vesting period = The time period after which the options can be exercised
Thus, after the first year, employee compensation expenses to be recognized
= [tex]\frac{300000 *\ 3}{3\ years}[/tex] × 1 year = $300,000 - 0 = $300,000
Similarly, for the second year, option expenses to be recognized would be,
= [tex]\frac{300000 *\ 3}{3\ years}[/tex]  × 2 years - $300,000 =  $300,000
Similarly for the third year
= [tex]\frac{300000 *\ 3}{3\ years}[/tex] × 3 years - ($300,000+ 300,000)  = $300,000
The journal entry to be passed each year would be
Stock Option Compensation Expense A/C Â Dr. $300,000
              To Stock Options A/C             $300000 Â
(Being stock option expenses for the year recognized)
Answer:
Per year compensation = $300,000
Explanation:
Given:
Number of shares = 300,000
Estimated fair value = $3 each
Total number of year = 3 year initially
Computation of total compensation :
Total compensation = Number of shares × Estimated fair value
Total compensation = 300,000 × $3
Total compensation = $900,000
Computation of Per year compensation:
Per year compensation = Total compensation / Total number of year
Per year compensation = $900,000 / 3
Per year compensation = $300,000
