Reference no: EM133012380

Question - On June 30, 2018, Calgary Corp. granted stock options for 30,000 of its no par value common shares to key employees, at an option price of $ 36. On that date, the market price of the common shares was $ 32. The Black-Scholes option pricing model determined total compensation expense to be $ 720,000. The options are exercisable beginning January 1, 2021, provided the key employees are still employed by Calgary at the time the options are exercised. The options expire on June 30, 2022. On January 2, 2021, when the market price of the shares was $ 42, all 30,000 options were exercised. What the amount and entry of compensation expense Calgary should have recorded for calendar 2020?