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How much is the total compensation expense and what entry

On January 1, 2007, a company grants its employees stock options enabling them to buy 300 shares at $10 per share after December 31, 2009. The current market price of the shares is $14.

(a) How much is the total compensation expense?

(b) What entry is made on January 1, 2007?

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Accounting Basics: How much is the total compensation expense and what entry

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