Business, 12.03.2021 15:20, zariahirons44
On January 1, 2019 Pelosi Company granted Tiffany C., an employee, an option to buy 300 shares of Pelosi Co. stock for $40 per share, the option exercisable for 5 years from date of grant. Using a fair value option pricing model, total compensation expense is determined to be $3,800. Buchanan exercised his option on September 1, 2019, and sold his 100 shares on December 1, 2019. Quoted market prices of Pelosi Co. stock during 2019 were: January 1 $40 per share September 1 $48 per share December 1 $54 per share The service period is for two years beginning January 1, 2016. As a result of the option granted to Buchanan, using the fair value method, Pelosi should recognize compensation expense for 2016 on its books in the amount of Group of answer choices $0. $1,800. $3,600 $1,900 $4,200
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