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:

Analytical Report

is a document that provides data analysis, interpretations, and possible strategies based on the data's findings.

Sampling Bias

A statistical bias that occurs when a sample is not representative of the population from which it's drawn, affecting the validity of results.

In-depth Interviews

A qualitative research technique involving detailed, open-ended conversations with individuals to explore their perspectives.

Leading Questions

Leading questions are those structured in a way that suggests a particular answer, often used in conversations or surveys to elicit specific responses.