Business, 25.11.2019 21:31 nicoledambrosia16

On january 2, 2014 sanders corporation granted stock options to key employees for the purchase of 60,000 shares of the company's common stock at $25 per share. the options are intended to compensate employees for the next two years (service period). the options are exercisable within a four year period beginning january 1, 2016, by grantees still in employ of the company (exercise period). the fair value of the option determined by an option pricing model is $7 at the grant date. how much should sanders charge to compensation expense for the year ended december 31, 2014? assume that no stock options were terminated during the year.

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