On January 1, 2016, Howard, Inc

Subject:AccountingPrice:3.87 Bought7

Share With

On January 1, 2016, Howard, Inc. granted to a key executive a fixed compensatory share option plan for 1,000 shares of $4 par common stock for $30 a share. The fair value per option on that date was $14. The service period extended through December 31, 2017.
Refer to Exhibit 15-3. What entry, if any, was required on December 31, 2016?

a. no entry was necessary

b. Compensation Expense            7,000
Paid-in Capital Share Options                    7,000

c. Compensation Expense            6,000
Paid-in Capital Share Options                    6,000

d.Compensation Expense            9,000
Deferred Compensation                             9,000