Business, 02.06.2021 21:30, aron4327

On January 1, 2011, Paul Co. granted its CEO, Valerie Paul, 1,000 stock options with an exercise price of $30 per share as compensation. The options vest over four years and expire after 10 years. The stock price on the grant date was $30 and the fair value of the option grant was $10 per share. On December 31, 2012, Paul Co. recorded a journal entry related to this option grant. Which of the following items would be decreased by the December 31, 2012 journal entry?
A. Net Income
B. Compensation Expense
C. Additional Paid in Capital
D. Cash from Operating Activities
E. Cash from Financing Activities

Answers: 3

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On January 1, 2011, Paul Co. granted its CEO, Valerie Paul, 1,000 stock options with an exercise pri...