Assume common stock is issued to employees as a result of exercising stock purchase rights issued under a noncompensatory share purchase plan. At what value does the company record that stock in its books?
A) market price of the stock
B) exercise price of the stock
C) market price of the stock at the first date that the stock purchase right can be exercised
D) option price of the stock plus the value assigned to the stock purchase right

Question

Quizplus · Accepted Answer

The company records the stock at the exercise price of the stock when issued under a noncompensatory share purchase plan.

Assume Common Stock Is Issued to Employees as a Result