On January 1, 2010, Hilltop, Inc. granted to a key executive a fixed compensatory option plan for 1,000 shares of $4 par common stock for $30 a share. The fair value per option on that date was $12 per option. The service period extended through December 31, 2011.

                     Exhibit 5

On January 1, 2010, Hilltop, Inc. granted to a key executive a fixed compensatory option plan for 1,000 shares of $4 par common stock for $30 a share. The fair value per option on that date was $12 per option. The service period extended through December 31, 2011.

Refer to Exhibit 5. What entry, if any, was required on December 31, 2010?

Answer

		no entry was necessary
		Compensation Expense              12,000    Common Stock Option Warrants             12,000
		Compensation Expense               6,000    Common Stock Option Warrants              6,000
		Compensation Expense               9,000    Deferred Compensation                     9,000

CLICK HERE TO GET THE ANSWER !!!!