Business, 05.05.2021 23:50 cheriebg

On January 1, 2019, Marigold Corp. granted Sam Wine, an employee, an option to buy 1,000 shares of Marigold 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 $6060. Wine exercised his option on October 1, 2021 and sold his 1,000 shares on December 1, 2021. Quoted market prices of Marigold Co. stock in 2021 were: July 1 $30 per share
October 1 $36 per share
December 1 $40 per share
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, Marigold should recognize compensation expense for 2018 on its books in the amount of:.

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On January 1, 2019, Marigold Corp. granted Sam Wine, an employee, an option to buy 1,000 shares of M...

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