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Alik [6]
3 years ago
9

Crane Company on January 1, 2018, granted stock options for 63000 shares of its $10 par value common stock to its key employees.

The market price of the common stock on that date was $25 per share and the option price was $20. The Black-Scholes option pricing model determines total compensation expense to be $627000. The options are exercisable beginning January 1, 2021, provided those key employees are still in Crane’s employ at the time the options are exercised. The options expire on January 1, 2022. The amount of compensation expense Crane should record for 2017 under the fair value method is:_______.
a. $0.
b. $207000.
c. $103500.
d. $310500.
Business
1 answer:
attashe74 [19]3 years ago
3 0

The amount of compensation expense Crane should record for 2017 under the fair value method is $207000

<u>Solution:</u>

From the given,

Stock options for 63000 shares

$10 par value common stock

$25 per share and the option price was $20

Total compensation expense = $627000

On calculating we get,

\Rightarrow\frac{627000}{3}= \$207,000

We can conclude that there is $207,000 decrease. Therefore, the correct answer is option c.

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Answer:

19%

Explanation:

Given that,

Nominal GDP in 2010 = $200 billion

Nominal GDP in 2009 = $180 billion

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GDP deflator in 2009 = 105

Percentage change in prices:

= Percentage change in GDP deflator

= (Change in GDP deflator ÷ GDP deflator in 2009) × 100

= [(125 - 105) ÷ 105] × 100

= (20 ÷ 105) × 100

= 0.19 × 100

= 19%

Therefore, the prices increases by 19%.

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Route Canal Shipping Company has the following schedule for aging of accounts receivable:Age of Receivables April 30, 20X1 (1) (
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Answer:

Explanation:

The formula to compute the percentage of amount due for each month is shown below:

= (Month wise amount due) ÷ (Total receivables) × 100

For April:

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= 40%

For March:

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For February:

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5 0
3 years ago
After making a sale, a seller may have customers that return goods. The seller uses the perpetual inventory system. This require
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Answer:

D. All of the statements are correct.

Explanation:

The Seller requires to

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After the estimation of values record the adjusting transaction for the estimated return liability and the inventory to be returna as well.

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Imagine that you have been hired by a large pizza chain to develop an IBP campaign for a new product, the KidZa Meal, which will
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Answer:

Advertising campaign that will be best suited is by inviting kids to the restaurant and arranging free of cost activities like drawing competition or similar and give free KidZa meals to the winners. This is where children will give attention to the newly launched meal and doll shaped chef will appeal them to buy the meal.  There can be advertisements on television which will seek attention of the kids at home. There can be stalls placed at various schools to familiarize kids with restaurant and give free discount vouchers which will force them to pay a visit at the restaurant.

Explanation:

Marketing strategies for the kids is very different than the adults. The adults usually analyze cost benefit whereas kids just choose a product if it looks good and colorful. The kids decide to buy a product when it appeals them. The doll as a gift is a great feature that will appeal kids to buy the meal.

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