If the options have a vesting period of five years, what would be the balance in "Paid-in Capital - Stock Options" three years after the grant date?
A)A credit of $4.8 million.
B)A credit of $16.2 million.
C)A debit of $4.8 million.
D)A debit of $16.2 million.1,000,000 $8 3/5 = $4,800,000

Question

Quizplus · Accepted Answer

The balance in "Paid-in Capital - Stock Options" would be a credit of $4.8 million after three years, as the vesting period is five years and the expense is recognized over this period.

If the Options Have a Vesting Period of Five Years