A)
Cash
408,000
APIC—Stock options
204,000
Common stock
68,000
APIC
544,000
B)
Cash
408,000
APIC—Stock options
204,000
Common stock
80,000
APIC
532,000
C)
Cash
204,000
APIC—Stock options
68,000
Common stock
68,000
APIC
204,000
D)
Cash
408,000
APIC—Stock options
68,000
Common Stock
80,000
APIC
396,000
Answer: A
Explanation: A) Cash 68,000 sh × $6 = $408,000; APIC—stock Options $240,000 × 85% = $204,000; Common Stock 80,000 shs × 85% × $1 = $68,000; APIC = $408,000 + $204,000 – $68,000 = $544,000