What income statement will include in compensation expense


On January 1, 2013, Lakewood Corporation granted stock options to officers and key employees for the purchase of 50,000 shares of the company's $20 par common stock at $40 per share as additional compensation for services to be rendered over the next three years. The market price of common stock was $49 per share at the date of grant. The options are exercisable during a five-year period beginning January 1, 2016 by grantees still employed by Lakewood. The Black-Scholes option pricing model determines total compensation expense to be $600,000. The 2013 income statement will include compensation expense related to these stock in what amount ?

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Accounting Basics: What income statement will include in compensation expense
Reference No:- TGS042251

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