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. On January 1, 2009, G Corp. granted stock option...

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. On January 1, 2009, G Corp. granted stock options to key employees for the purchase of 80,000 shares of the company's common stock at $25 per share. The options are intended to compensate employees for the next two years. The options are exercisable within a four-year period beginning January 1, 2011, by the grantees still in the employ of the company. No options were terminated during 2009, but the company does have an experience of 4% forfeitures over the life of the stock options. The market price of the common stock was $31 per share at the date of the grant. G Corp. used the Binomial pricing model and estimated the fair value of each of the options at $10. What amount should G charge to compensation expense for the year ended December 31, 2009? A. $307,200. B. $320,000. C. $384,000. D. $400,000.,can you sow me how you got this answer?

 

Paper#9297 | Written in 18-Jul-2015

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