On January 1, Year 1, LL Company issued 100 stock options with an exercise price of...

Date	Share Price	Fair value of option
Jan. 1, Year 1	$21	$12
December 31, Year 1	$21	$13
December 31, year 2	$30	$15

Assume that this is the equity-settled share-based transaction. Please make all necessary journal entries from Jan. 1, Year 1 to December 31, Year2 (4 points).

Assume that this is the choice-of-settlement share-based transaction, in which the employees can choose to settle the options either (1) in shares of stock or (2) in cash. The option fair value of cash-settlement is equal to the fair value of equity-settlement. Please make all necessary journal entries from Jan. 1, Year 1 to December 31, Year 2 if all employees choose the share settlement.(5 points)

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ekkarill92 answered 9 months ago

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