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Business, 19.07.2021 19:40 hcarcel8287

On December 31, 2020, Zhang Company granted some of its executives, options to purchase 160,000 shares of the company's $15 par common stock at an option price of $45 per share. The options become exercisable on January 1, 2021, and represent compensation for executives' services over a four-year period beginning January 1, 2021. The Black-Scholes option pricing model determines total compensation expense to be $1,200,000. At December 31, 2021, none of the executives had exercised their options. What is the impact on Zhang's net income for the year ended December 31, 2021 as a result of this transaction under the fair value method

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