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On January 1, 2017, Cullumber Corporation granted 18,300 options to key executives. Each option allows the...
On January 1, 2017, Cullumber Corporation granted 18,300 options to key executives. Each option allows the executive to purchase one share of Cullumber’ common shares at a price of $26 per share. The options were exercisable within a two–year period beginning January 1, 2019, if the grantee was still employed by the company at the time of the exercise. On the grant date, Cullumber’s shares were trading at $22 per share, and a fair value options pricing model determined total compensation to be $720,000. Management has assumed that there will be no forfeitures as they do not expect any of their key executives to leave.
On May 1, 2019, 6,900 options were exercised when the market price of Cullumber’s shares was $33 per share. The remaining options lapsed in 2020 because executives decided not to exercise their options. Management was indeed correct in their assumption regarding forfeitures in that all executives remained with the company. Assume that Cullumber follows IFRS.
a) Prepare the necessary journal entries related to the stock option plan for the years ended December 31, 2017, through 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.)
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ekkarill92 answered 1 year agoRelated Solutions
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