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Each option entitles the holder to purchase one share

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Reference no: EM131107335

1. On January 1, 2010, Bar wood Corporation granted 5,000 options to executives. Each option entitles the holder to purchase one share of Bar wood's $5 par value common stock at $50 per share at any time during the next 5 years. The market price of the stock is $65 per share on the date of grant. The fair value of the options at the grant date is $150,000. The period of benefit is 2 years. Prepare Bar wood's journal entries for January 1, 2010, and December 31, 2010 and 2011 

Reference no: EM131107335

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