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At the time of the option awarded the exercise price was

Question - Opts Co. awards 10,000 shares of options to its employees with the vesting period of 5 years. The option was awarded on January 1st, 2013. At the time of the option awarded, the exercise price was $10/share while the market price of the stock was $13/share. What would be the compensation expense at the end of year 2013? Write your answer without dollar sign to the nearest dollar with no decimals.

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Accounting Basics: At the time of the option awarded the exercise price was

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