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Determine the market prices of fox stock

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On August 1, 20x1, Fox Co. granted an employee an option to purchase 30,000 shares of Fox's $5 par value common stock at $40 per share. The option became exercisable on August 1, 20x5, after the employee completed four years of service. The option was exercised on January 15, 20x6. The market prices of Fox's stock and stock options were as follows:

Date                   Market price of similar option                 Market price of stock

January 15,                  20x6 $30                                        $60

August 1,                    20x5 $29                                         $55

August 1,                    20x1  $25                                         $50

Question 1: For 20x5, Fox should recognize compensation expense of

Reference no: EM132467368

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