How much Orion should recognize compensation expense

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Question - On January 1, 2020, Orion Corp. granted an employee an option to purchase 5,000 of Orion's no par value common shares at $50 per share. The Black-Scholes option pricing model determined total compensation expense to be $220,000. The option became exercisable on December 31, 2021, after the employee completed two years of service. The market prices of Orion's shares were as follows:

January 1, 2020 $40

December 31, 2021 $52

For calendar 2021, how much Orion should recognize compensation expense?

a. $250,000.

b. $0.

c. $110,000.

d. $50,000.

Reference no: EM132649226

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