Which is the correct entry to record compensation expense

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Reference no: EM132654056

Question - Wall Drugs offered an incentive stock option plan to its employees. On January 1, 2018, options were granted for seventy-two thousand $1 par common shares. The exercise price equals the $5 market price of the common stock on the grant date. The options cannot be exercised before January 1, 2021, and expire December 31, 2022. Each option has a fair value of $1 based on an option pricing model. Which is the correct entry to record compensation expense for the year 2018?

Reference no: EM132654056

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