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Price Farms Granted 290,000 Stock Options to Its Employees

question 53

Essay

Price Farms 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 Price five years after the grant date may exercise the option to purchase shares at $45 each; that is, the options vest to the employees after five years. A consultant estimated the value of each option at the date of grant to be $1.50 each.
Required:
Record the journal entries relating to the issuance of stock options.


Definitions:

Infidelity

The act of being unfaithful or cheating in a romantic relationship.

Committed Relationships

A bond between individuals that involves a pledge or promise to be together in a mutually agreed upon relationship, often characterized by love, trust, and mutual support.

Contraceptive Method

Any of various techniques or devices used to prevent pregnancy as a result of sexual intercourse.

Failure Rate

A measure of the frequency at which an engineered system or component fails, expressed in a particular unit of measure.

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