Business, 18.02.2020 17:35, eks8252

On January 2, Year 1, Kine Co. granted Morgan, its president, fully vested share options to buy 1,000 shares of Kine’s $10 par common stock. The options have an exercise price of $20 per share and are exercisable for 3 years following the grant date. Morgan exercised the options on December 31, Year 1. The market price of the shares was $50 on January 2, Year 1, and $70 on the following December 31. Since the fair value of the options is not reasonably estimable at the grant date, the options are measured at intrinsic value. By what net amount will equity increase as a result of the grant and exercise of the options? (Ignore tax considerations.)

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On January 2, Year 1, Kine Co. granted Morgan, its president, fully vested share options to buy 1,00...