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Mumz [18]
3 years ago
14

On January 1, 2018, Red Inc. issued stock options for 280,000 shares to a division manager. The options have an estimated fair v

alue of $5 each. To provide additional incentive for managerial achievement, the options are not exercisable unless divisional revenue increases by 6% in three years. Red initially estimates that it is probable the goal will be achieved. Ignoring taxes, what is compensation expense for 2018? (Round your answer to the nearest dollar amount.)
Business
1 answer:
madam [21]3 years ago
8 0

Answer:

$466,667

Explanation:

Compensation expenses for 2018 should be computed as follows:

Fair value of each option = $5

Number of stock options issued = 280,000

Therefore,

Total compensation expense = $5 x 280,000

                                                 = $1,400,000

And,

Number of years for which the compensation expense would be recognized = 3

Thus,

Compensation expense for 2018:

= Total compensation expense ÷ Number of years

= $1,400,000 ÷ 3

= $466,667

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The West European buyers who purchase and resell Entrée Specialités’ food products in their home countries are in the _____ busi
defon

Answer:

The correct answer is letter "A": importing.

Explanation:

Importing activities involve businesses or individuals purchasing goods from manufacturers abroad with the purpose of reselling those goods or for personal use. Importing goods imply paying tariffs on those products as a way to protect national businesses.

5 0
3 years ago
The checkbook of Vance Company had a balance of $2,210.55. The bank statement showed a balance of $4,918.18. The bank collected
Vikentia [17]

Answer:

$4,332.89

Explanation:

The adjusted reconciled checkbook balance will include:

    checkbook balance                                         $2,210.55

    + bank collect note                                         $2,000.00

    - fee for collecting the note                                 ($5.00)

    + earned interest                                                  $42.33

    + difference in recording a check $400 - $300 = $100

   <u> - banking service charge                                   ($14.99)  </u>

    total =                                                              $4,332.89

6 0
3 years ago
When Stuart sold a computer network to a Fortune 500 company, he often called on the company's purchasing department to see if e
Semmy [17]

Answer: Relationship selling

Explanation:

Stuart in his sales transaction with Fortune 500 company, is carrying out relationship selling, where the seller tries to make sales by creating a friendly relationship with their buyers. Relationship selling helps the buyer to easily relate with the seller, thereby making sales very easy to transact.

7 0
3 years ago
Refer to the following selected financial information from Marston Company. Compute the company's accounts receivable turnover f
Artyom0805 [142]

Answer:

The correct option is E

Explanation:

The formula to compute the accounts receivable turnover of the company for the Year 2 is as:

Accounts Receivable Turnover = Net Credit Sales / Average Accounts Receivable

where

Net Credit Sales be $723,000

And

Average Accounts Receivable is computed as:

Average Accounts Receivable = Accounts receivable Year 1 + Accounts receivable Year 2 / 2

= $86,500 + $82,750 / 2

= $169,250 / 2

= $84,625

Putting the values in the above formula:

= $723,000 / $84,625

= 8.54

5 0
3 years ago
Business behavior determines the ethics of society.We can improve society's moral and ethical behavior by first making a commitm
valkas [14]

Answer: The correct answer is False.

Explanation:

Business behavior will not determine the ethics of society. Businesses can't be responsible to change the moral and ethical behaviors of a single person or an entire world. Only a person can change their own behavior. A society in whole can only be changed by each person acting upon their own free will.

If a business is not ethical, then they need to change the way they work and do business and lead by example.

7 0
3 years ago
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