Princeton Inc

question 35

Essay

Princeton Inc. granted 290,000 stock options to its employees. The options expire 45 years after the grant date of January 1, 2021, when the share price was $23. Employees still employed by the company four years after the grant date may exercise the option to purchase shares at $45 each; that is, the options vest to the employees after four years. A consultant estimated the value of each option at the date of grant to be $2.50 each.
Required:
Record the journal entries relating to the issuance of stock options.

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Definitions:

Coefficient Of Correlation

An index that measures the magnitude and direction of a straight-line association between two variables.

Coefficient Of Correlation

An analytical tool that evaluates the strength of the association between the relative shifts of two variables.

Independent Variables

Independent variables are the factors in an experiment that are manipulated or changed by the researcher to investigate their effects on the dependent variables.

Distribution

The way in which something is shared or spread out over an area or among a population.