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Prepare the journal entry to record compensation expense

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Question - A Wild West Corporation initiated a stock option plan for its management team on January 1, 20x4. The fair value of the plan at the date of grant was $250,000. The vesting period ends on December 31, 20x6. The unadjusted trial balance as at December 31, 20x5 shows a balance of $95,600 in the Contributed Surplus - Stock Options account. At December 31, 20x5, the company estimated that 82% of options would vest.

Required - Prepare the journal entry to record compensation expense at December 31, 20x5.

Reference no: EM132549044

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