試題詳解

23. On January 1, 2019 RR Company granted JB, an employee, an option to buy 100 shares of RR 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 €1,400. JB exercised his option on September 1, 2019, and sold his 100 shares on December 1, 2019. Quoted market prices of RR Co. shares during 2019 were:

 The service period is for two years beginning January 1, 2019. As a result of the option granted to JB, using the fair value method, RR should recognize compensation expense for 2019 on its books in the amount of
(A) €0.
(B) €1,400
(C) €700.
(D)€800