1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
QveST [7]
3 years ago
15

Pastner Brands is a calendar-year firm with operations in several countries. As part of its executive compensation plan, at Janu

ary 1, 2021, the company issued 480,000 executive stock options permitting executives to buy 480,000 shares of Pastner stock for $33 per share. One-fourth of the options vest in each of the next four years beginning at December 31, 2021 (graded vesting). Pastner elects to measure the fair value of all options on January 1, 2021, to be $4.80 per option (tranche) using a single weighted-average expected life of the options assumption.
Determine the compensation expense related to the options to be recorded each year 2021-2024 assuming Pastner allocates the compensation cost for each of the four groups (tranches) separately
Business
1 answer:
lesantik [10]3 years ago
7 0

Answer:

Compensation expense of $510,000 will be recorded each year 2021-2024

Explanation:

Stock option gives a right to employee to buy an amount of company stock at a given price in specified time period. It is charged as expense according to the fair value of the stock option every year until exercise-able date.

Compensation expense of $510,000 will be recorded each year 2021-2024

All the working is made in an MS Excel file and answer is made accordingly. Please find it.

Download xlsx
You might be interested in
produces sports socks. The company has fixed expenses of $ 75 comma 000$75,000 and variable expenses of $ 0.75$0.75 per package.
8090 [49]

Answer:

Results are below.

Explanation:

Giving the following information:

Selling price= $1.5

Unitary variable cost= $0.75

Fi<u>rst, we need to calculate the unitary contribution margin:</u>

<u></u>

Contribution margin= selling price - unitary variable cost

Contribution margin= 1.5 - 0.75

Contribution margin= $0.75

<u>Now, we can calculate the contribution margin ratio:</u>

contribution margin ratio= contribution margin/selling price

contribution margin ratio= 0.75/1.5

contribution margin ratio= 0.5

7 0
3 years ago
A contingent liability is:Multiple ChoiceAlways of a specific amount.An obligation arising from the purchase of goods or service
Ainat [17]

Answer:

A potential obligation that depends on a future event arising from a past transaction or event

Explanation:

A contingent liability is a potential obligation that depends on a future event arising from a past transaction or event.

Contingent liability are usually recorded in the financial statements if :

A. The contingency is likely to occur

B. The amount can be estimated.

I hope my answer helps you

5 0
2 years ago
​a(n) __________ is used to determine the benefits that target customers value and how customers rate the relative value of vari
deff fn [24]

The answer is customer value analysis. This is responsible for providing information in regards with the organization’s way of how they are able to maintain or work well with their competitions and to their customers. This is considered to be important because it provided a basis and comparison with the rivals existing in the organizations.

6 0
3 years ago
An increase in the real wage would result in a:________. a. shift of the labor demand curve, causing an increase in the number o
barxatty [35]

Option C

An increase in the real wage would result in a: movement along the labor demand curve, causing a decrease in the number of workers hired by the firm.

<u>Explanation:</u>

The wage rate is circumscribed by the crossing of supply and demand for labor. The demand curve depends on the marginal product of labor and the cost of the good labor originates.

A variation in the wage or payroll will end in a shift in the amount necessitated of labor. If the wage rate increases, organizations will require to hire fewer employees. The quantity of labor demanded will decline, and there will be a movement skyward on the demand curve.

5 0
3 years ago
Bubba is a shrimp fisherman who can catch 4,000 pounds of shrimp per year. Bubba is considering hiring his cousin Bobby to work
melisa1 [442]

Answer:

7,000 pounds

Explanation:

Data provided in the question:

Shrimps Bubba catches per year = 4,000 pounds

Shrimps that Bobby can catch per year = 3,000 pounds

Therefore,

The marginal contribution of Bobby in the output if Bobby is hired is 3,000 pounds of shrimp

Hence,

The total output of his shrimp business is Bubba hires Bobby will be

= Output of Bubba per year + Output of Bobby per year

= 4,000 pounds + 3,000 pounds

= 7,000 pounds

4 0
3 years ago
Other questions:
  • To take advantage of an arbitrage opportunity, an investor would 1) construct a zero-investment portfolio that will yield a sure
    6·1 answer
  • Kate holds a middle-management position with a large corporation. She prefers to involve her subordinates in decision making. Sh
    13·1 answer
  • Roughly what portion of u.s. total health spending is paid for by private and public insurance?
    9·1 answer
  • Makes our arms, legs, and head move
    13·2 answers
  • "With a finance degree, you can apply for almost any position available to accounting majors."
    5·1 answer
  • Birds Unlimited has an accounts payable period of 60 days. The firm has expected sales of $17,800, $22,100, $24,400 and $28,800,
    15·1 answer
  • For the last several months, an employee stays late to finish up work. When
    5·2 answers
  • In the workplace today, more emphasis is being put on mental health. But sometimes, employees don't want to be seen as being una
    8·1 answer
  • Select the correct answer.
    9·1 answer
  • dakota, a manager for a large trucking company, wants to evaluate his truck drivers but is unsure of which type of performance a
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!