hard · Financial Accounting accounting-cycle-financial-statements
A firm grants 1M stock options with a fair value of 28 each and a 4-year cliff vesting period.
In Year 1, what is the impact on the Balance Sheet (ignoring taxes)?
- 7M decrease in total Stockholders' Equity
- No change to total Stockholders' Equity
- 28M decrease in Retained Earnings
- 7M increase in Liabilities
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