E16-11b (issuance, exercise, and termination of stock options) on

E16-11B (Issuance, Exercise, and Termination of Stock Options) On January 1, 2014, EZ Inc. granted stock options to officers and key employees for the purchase of 250,000 shares of the company’s $1 par common stock at $86 per share. The options were exercisable within a 5-year period beginning January 1, 2016, by grantees still in the employ of the company, and expiring December 31, 2018. The service period for this award is 2 years. Assume that the fair value option pricing model determines total compensation expense to be $1,250,000.

On July 1, 2014, 20,000 option shares were terminated when the employees resigned from the company.

The market value of the common stock was $88 per share on this date.

On March 31, 2016, 130,000 option shares were exercised when the market value of the common stock was $91 per share.



Prepare journal entries to record issuance of the stock options, termination of the stock options, exercise

of the stock options, and charges to compensation expense, for the years ended December 31, 2014, 2015,

and 2016.

Calculate your order
Pages (275 words)
Standard price: $0.00
Client Reviews
Our Guarantees
100% Confidentiality
Information about customers is confidential and never disclosed to third parties.
100% Originality
The main foundation of any academic writing company is offering 100% originality in their orders. Make your order today and benefit from anti-plagiarized papers.
Customer Support 24/7
You can rest assured that our customer support team is consistently available to solve any difficulties and take your orders 24/7.
Money Back
If you're confident that a writer didn't follow your order details, ask for a refund.

Calculate the price of your order

You will get a personal manager and a discount.
We'll send you the first draft for approval by at
Total price:
Power up Your Academic Success with the
Team of Professionals. We’ve Got Your Back.
Power up Your Study Success with Experts We’ve Got Your Back.