McMillan Manufacturing Issued 60,000 Stock Options to Its Employees

Essay

McMillan Manufacturing issued 60,000 stock options to its employees. The company granted the stock options at-the-money, when the share price was $40. These options have no vesting conditions. By year-end, the share price had increased to $42. McMillan's management estimates the value of these options at the grant date to be $1.10 each.
Required:
Record the issuance of the stock options.