Business, 14.12.2021 05:30, mrmendrala

On January 1, 2020, Holiday Inc. offered a stock option incentive plan to a top executive. The plan provided the executive 300 stock options for Holiday Inc. $1 par value, common stock at an option price of $15 per share through the expiration date of January 1, 2026. The fair value of the options based upon an option-pricing model on January 1, 2020, is $12,000. The market price at year-end of Holiday Inc. stock is $15 per share on January 1, 2020, and $18 on December 31, 2020. The requisite service period is 3 years. The options were not exercised. Which of the following are true regarding the entry on January 1, 2026? A.
No journal entry required
B.
Paid-in Capitalâ€”Stock Options would be credited for $9000
C.
Paid-in Capitalâ€”Stock Options would be credited for $12,000
D.
Paid-in Capitalâ€”Stock Expired would be credited for $12,000

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On January 1, 2020, Holiday Inc. offered a stock option incentive plan to a top executive. The plan...