How much compensation expense should Watchtower recognize

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Problem - On January 1, 2014, Watchtower Corporation granted Emma Freegross, its president, a compensatory stock option plan to purchase 8,000 shares of Watchtower's $10 par common stock. The option price is $25 per share and the option has a fair value of $7 per option, which is exercisable on January 1, 2018, after four years of service. How much compensation expense should Watchtower recognize on December 31, 2014?

Reference no: EM132772793

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