During the fiscal year ended January 28, 2017, Abercrombie & Fitch reported the exercise of 2,000 shares at a weighted-average exercise price of $22.87.
If Abercrombie's stock was trading at $11.36 on January 27, 2017 and $12.00 on December 30,2016, which of the following details an impact of this transaction on Abercrombie's accounts?
A) A decrease of $24,000 to additional paid-in capital
B) An increase of $45,740 to cash
C) A decrease of $42,300 to additional paid-in capital
D) An increase of $22,720 to cash
E) None of the above

Question

Quizplus · Accepted Answer

The exercise of 2,000 shares at a weighted-average exercise price of $22.87 results in an increase of $45,740 to cash (2,000 shares * $22.87 per share).

During the Fiscal Year Ended January 28, 2017, Abercrombie