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On January 1 2018 Sunland Company granted Sam Wine an employee an option to buy 1000 shares of Sunland Co stock for $30 per share the option exercisable for 5 years from date of grant

On January 1, 2018, Sunland Company granted Sam Wine, an employee, an option to buy 1,000 shares of Sunland Co. stock for $30 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 $6360. Wine exercised his option on October 1, 2018 and sold his 1,000 shares on December 1, 2018. Quoted market prices of Sunland Co. stock in 2018 were:

The service period is for three years beginning January 1, 2018. As a result of the option granted to Wine, using the fair value method, Sunland should recognize compensation expense for 2018 on its books in the amount of

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July 1

$28 per share

October 1

$34 per share

December 1

$38 per share

 

 

Mar 20 2020 View more View Less

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