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What amount should Owl recognize as compensation expense

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Question - On December 31, 2019, Owl Co. granted employee options to purchase 7,500 common shares at $200 per share. The options are exercisable on January 1, 2022, after employees completing 2 years of service. Fair values of the options and market prices of the stock were as follows:

 

Option Fair Value

Stock Market Price

December 31, 2019

$75

$205

December 31, 2020

$70

$200

January 1, 2022

$80

$210

Assuming no forfeitures, what amount should Owl recognize as compensation expense for 2020?

Reference no: EM132509971

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