Elucidate amount that should doe recognize as compensation

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Reference no: EM13130069

Jan 1, 2011, Doe co. granted 93,000 stock options to certain executives. The options are exercisable no sooner than Dec. 31, 2013 and expire on Jan.1, 2017. Each option can be exercised to acquire one share of $1 par common stock for $10. An option-pricing model estimates the fair value of the options to be $4 on the date of grant. If unexpected turnover in 2012 caused the company to estimate that 10% of the options would be forfeited, what amount should Doe recognize as compensation expense for 2012?(do not round intermediate calculations and round final answer to nearest whole dollar).

Reference no: EM13130069

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