Stock-option compensation expense

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Reference no: EM131905660

Howell Company began business on March 1, 2017. At that time, it granted 250,000 options, with a strike price of $5, to computer engineers in lieu of signing bonuses. The fair value of each option was estimated at $1 and the options vest over four years. What benefits did Howell Company create by granting options to the engineers instead of cash signing bonuses? What is the total expense that the company will record associated with the options granted in 2017? What will Howell record in 2017 for stock-option compensation expense?

Reference no: EM131905660

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