Accounting Assignment | College Homework Help

On January 1, 2021, Wendy Day Co, granted stock options to key executives exercisable for 519,000 shares of the company’s common stock at $19 per share. The stock options are intended as compensation for the next five years. The options are exercisable within a four-year period beginning January 1, 2025, by the executives still in the employ of the company. No options were terminated during 2021, but the company anticipates 6% forfeitures over the life of the stock options.College Homework Help
The market price of the common stock was $19 per share at the date of the grant. Wendy Day estimated the fair value of the options at $5 each. 2% of the options are forfeited during 2022 due to executive turnover. What amount should Wendy Day record as compensation expense for the year ended December 31, 2022, assuming the company chooses to estimate forfeitures? Multiple Choice O $487,860 O $513,810 O $529,380 O $519,000 Get Accounting Homework Help Today

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