On January 1, 2016 Reese Company granted Jack Buchanan, an employee, an option to buy 100 shares of Reese Co.shares for $40 per share, the option exercisable for 5 years from date of grant.Using a fair value option pricing model, total compensation expense is determined to be $1,200.Buchanan exercised his option on September 1, 2016, and sold his 100 shares on December 1, 2016.Quoted market prices of Reese Co.shares during 2016 were: The service period is for two years beginning January 1, 2016.As a result of the option granted to Buchanan, using the fair value method, Reese should recognize compensation expense for 2016 on its books in the amount of

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On January 1, 2016 Reese Company granted Jack Buchanan, an employee, an option to buy 100 shares of Reese Co.shares for $40 per share, the option exercisable for 5 years from date of grant.Using a fair value option pricing model, total compensation expense is determined to be $1,200.Buchanan exercised his option on September 1, 2016, and sold his 100 shares on December 1, 2016.Quoted market prices of Reese Co.shares during 2016 were:  The service period is for two years beginning January 1, 2016.As a result of the option granted to Buchanan, using the fair value method, Reese should recognize compensation expense for 2016 on its books in the amount of

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The Answer of On January 1, 2016 Reese Company granted Jack Buchanan, an employee, an option to buy 100 shares of Reese Co.shares for $40 per share, the option exercisable for 5 years from date of grant.Using a fair value option pricing model, total compensation expense is determined to be $1,200.Buchanan exercised his option on September 1, 2016, and sold his 100 shares on December 1, 2016.Quoted market prices of Reese Co.shares during 2016 were:  The service period is for two years beginning January 1, 2016.As a result of the option granted to Buchanan, using the fair value method, Reese should recognize compensation expense for 2016 on its books in the amount of

On January 1, 2016 Reese Company Granted Jack Buchanan, an Employee