Performance stock options to key executives

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LCI Cable Company grants 1.1 million performance stock options to key executives at January 1, 2016. The options entitle executives to receive 1.1 million of LCI $1 par common shares, subject to the achievement of specific financial goals over the next four years. Attainment of these goals is considered probable initially and throughout the service period. The options have a current fair value of $20 per option.

Prepare any necessary entry on December 31, 2018 assuming that it is not probable that the performance objectives will be met.

Prepare any necessary entry on December 31, 2019 assuming that it is not probable that the performance objectives will be met.

Reference no: EM131878512

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