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On January 1, 2021, Dorie Company granted an employee an option to purchase 30,000 shares of Dorie's P5 par value common stock at P20 per share. The option became exercisable on December 31, 2022, after the employee completed two years of service. The option was exercised on January 15, 2023.
The market prices of stock were as follows:
January 1, 2021 30December 31, 2021 50January 15, 2023 45
Problem 1: For 2021, Dorie should recognize compensation expense of
a. 450,000b. 375,000c. 150,000d. 0
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