Ensor materials corporation approved a stock

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Reference no: EM13923722

On October 15, 2015, the board of directors of Ensor Materials Corporation approved a stock option plan for key executives. On January 1, 2016, 26 million stock options were granted, exercisable for 26 million shares of Ensor's $1 par common stock. The options are exercisable between January 1, 2019, and December 31, 2021, at 80% of the quoted market price on January 1, 2016, which was $20. The fair value of the 26 million options, estimated by an appropriate option pricing model, is $6 per option. 2.6 million options were forfeited when an executive resigned in 2017. All other options were exercised on July 12, 2020, when the stock's price jumped unexpectedly to $25 per share

1When is Ensor's stock option measurement date?

2) Determine the compensation expense for the stock option plan in 2016. (ignore taxes )

Record the exercise of the options in 2020.

Prepare the necessary journal entries

Record compensation expense on December 31, 2017

Record compensation expense on December 31, 2018

Record the exercise of the options in 2020

Reference no: EM13923722

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