题目
题目

BU.210.650.51.FA25 Final Exam- Requires Respondus LockDown Browser

单项选择题

Myers Inc. decided to grant stock options as part of their managers' compensation. The company grants 15,000 stock options on January 1, 2013 to a manager. The fair value of each option at the grant date is $3 per share and the exercise price is equal to the current market value of $15. The vesting period is 4 years and the expiration date is January 1, 2019. On January 1, 2018, the manager exercises the stock options (the market value is $23). By how much will Total Shareholder's Equity increase as a result of this transaction?

选项
A.$225,000
B.$120,000
C.$300,000
D.$180,000
E.$270,000
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标准答案
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思路分析
Start by outlining the setup: 15,000 stock options granted with fair value $3 per option, vesting over 4 years, exercise price $15, options exercised on January 1, 2018 when market value is $23. The key accounting points are: - Grant date: compensation expense is recognized over the vesting period based on the fair value of the options. The total to be recognized is 15,000 × $3 = $45,000 per year for 4 years, totaling $180,000. However, this compensation expense affects net income and equity through retained earnings and APIC, and does not by itself increase total shareholder’s equity at grant because an offsetting amount is recorded in APIC. - Over the vesting period, the effect on total equity from the grant alone is zero, si......Login to view full explanation

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