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What would be amount of the credit in contributed surplus

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Question - On January 1, 2015, XYZ Inc. granted stock options to key employees for the purchase of 180,000 of the company's common shares at $30 each. The options were exercisable within a 2-year period beginning January 1, 2015 by grantees still in the employ of the company, and they expire January 1, 2016. The market price of XYZ's common share was $20 per share at the date of grant. Using the Black-Scholes option pricing model, the company estimated the value of each option on January 1, 2015, to be $3.00 per option granted and it is assumed that the options were for services performed equally in 2015 through the end of 2016.

On December 31, 2016, 60,000 options remained unexercised. The market value of the common stock was $44 per share at the time. The company has a December 31 year-end.

What would be the amount of the credit in the contributed surplus account from this transaction?

Reference no: EM132811143

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