O'Neil Manufacturing Issued 200,000 Stock Options to Its Employees

question 29

Essay

O'Neil Manufacturing issued 200,000 stock options to its employees. The company granted the stock options at-the-money, when the share price was $40. These options have no vesting conditions. By year-end, the share price had increased to $42. O'Neil's management estimates the value of these options at the grant date to be $1.75 each.
Required:
Record the issuance of the stock options.

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Definitions:

Brightness

The perception of how luminous an object appears, influenced by the object’s illumination and its surroundings.

Linear Perspective

is a technique in drawing and painting that creates the illusion of depth on a flat surface, using converging lines to denote distance.

Occlusion

In healthcare, it refers to the blockage or closing of a blood vessel or organ. In dentistry, it relates to the alignment of the teeth when the jaws are closed.

Vase

A container usually made of glass, ceramic, or metal used for holding cut flowers or as a decorative piece.