What amount will Owl credit to APIC-Common Stock

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Question - Owl Co. CEO exercises 1,000 of 10,000 stock options granted 3 years ago (with a $30 exercise price when the stock price was $25) for 1,000 common shares with a $2 par value and a current stock price of $35. These options were valued at grant date at $200,000 using Black-Scholes option pricing model not counting estimated and actual forfeitures of 10%. In Owl's entry when its CEO exercises 1,000 options, what amount will Owl credit to APIC-Common Stock?

a. 28,000

b. 18,000

c. 30,000

d. 48,000

e. 46,000

Reference no: EM132603504

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