What is the compensation expense for solov company

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Problem 1: On January 1, 2017, Solov Company granted to a senior officer 10,000 share options conditional upon the executive remaining in the entity's employ until December 31, 2019. However, the share options cannot be exercised unless the share price has increased from $50 on January 1, 2017 to above $65 on December 31, 2019. If the share price is above $65 on December 31, 2019, the share options can be exercised at any time during the next 5 years. The entity applied a binomial option pricing model and estimated that the fair value of the share option with this market condition on the grant date is $24. What is the compensation expense for 2017?

Reference no: EM132728449

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