Bark Ages, a famous pet shop, issued 90296 at-the-money stock options to its employees on January 1, 2021. The options vest on January 1, 2023 and expire onJanuary 1, 2026. Bark Age's share price was $55 on the grant date and $47 on the vesting date. Estimates of the fair value of the options showed they were worth $10
on the grant date and $22 on the vesting date.
Bark Ages estimates the forfeitures of 5% in 2021; actual forfeitures were 10%.
What is the compensation expense the year ended December 31, 2022?
