Connect CSecure https//newconnect.mheducation.com/flow/connect.html Ch. 19 - Bri

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Connect CSecure https//newconnect.mheducation.com/flow/connect.html Ch. 19 - Brief Exercises (80 minutes) Help Save & Exlt Submlt Saved 2 Check my work Brief Exercise 19-7 Stock options; expiration [LO19-2] Under Its executive stock option plan, National Corporation granted 10 million options on January 1, 2018, that permit executives to purchase 10 million of the company's $1 par common shares within the next six years, but not before December 31, 2020 (the vesting date). The exercise price is the market price of the shares on the date of grant, $14 per share. The falr value of the options, estimated by an appropriate option pricing model, is $3 per option. Suppose that the options expire without being exercised. 6.25 points gnoring taxes, what journal entry will National record? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) eBook References View transaction list Journal entry worksheet Record entry for the options that expired without being exercised Mc Graw Hill ?Prey 70116? Next > ???@) a a e 8:33 PM 4/17/2018

Explanation / Answer

General Journal Debit Credit Paid in capital stock option $30,000,000 Paid in capital expiration(10,000,000 * $3) $30,000,000

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