On January 1, 2007, Doro Corp. granted an employee an option to purchase 3,000 shares of Doro’s $5 par value common stock at $20 per share. The option became exercisable on December 31, 2008, after the employee completed two years of service. The option was exercised on January 10, 2009. The market prices of Doro’s stock and stock options were as follows:
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|
Date |
Market price of stock |
Market price of similar stock option |
|
January 1, 2007 |
$30 |
$8 |
|
December 31, 2008 |
50 |
9 |
|
January 10, 2009 |
45 |
11 |
For 2007, Doro should recognize compensation expense under SFAS 123(R) of
- $45,000
- $30,000
- $15,000
- $12,000