Assume That All Compensation Expense from the Stock Options Granted

question 54

Multiple Choice

Assume that all compensation expense from the stock options granted by Wilson already has been recorded. Further assume that 200,000 options expire in 2014 without being exercised. The journal entry to record this would include:

• A)Debit to paid-in capital-stock options for $8 million.
• B)A debit to common stock for $5 million.
• C)A debit to paid-in capital-expiration of stock options for $8 million.
• D)None of these is correct.This is 200,000 options that had been recorded by credits to paid-in capital-stock options for $8 million, i.e., 200,000 options $40 option.This is reversed at expiration.

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Definitions:

Table 310.15(B)(16)

A reference table in the National Electrical Code (NEC) that provides the allowable ampacities of insulated conductors of different sizes and types under various conditions.

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As pertaining to conductors, the de-rating of the current capacity of conductors due to ambient temperature.

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