On January 1,Year 1,Freeman Corporation granted stock options to key employees which allowed these employees to purchase 90,000 shares of the corporation's common stock at $30 per share.These options are intended to compensate employees for the next three years.The options may be exercised within a four-year period beginning January 1,Year 4,by the grantees still employed by the company.No options were terminated during Year 1,but Freeman does have an experience of 5% forfeitures over the life of the stock options.The market price of the stock was $35 per share at the date of grant.Freeman used an appropriate pricing model and estimated the value oh an option at $15.What amount should be charged to compensation expense for the year ended December 31,Year 1?

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The Answer of On January 1,Year 1,Freeman Corporation granted stock options to key employees which allowed these employees to purchase 90,000 shares of the corporation's common stock at $30 per share.These options are intended to compensate employees for the next three years.The options may be exercised within a four-year period beginning January 1,Year 4,by the grantees still employed by the company.No options were terminated during Year 1,but Freeman does have an experience of 5% forfeitures over the life of the stock options.The market price of the stock was $35 per share at the date of grant.Freeman used an appropriate pricing model and estimated the value oh an option at $15.What amount should be charged to compensation expense for the year ended December 31,Year 1?

On January 1,Year 1,Freeman Corporation Granted Stock Options to Key