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
kvasek [131]
4 years ago
7

On January 1, Year 1, Abbott Company granted 92,000 stock options to certain executives. The options are exercisable no sooner t

han December 31, Year 3, and expire on January 1, Year 7. Each option can be exercised to acquire one share of $1 par common stock for $14. An option-pricing model estimates the fair value of the options to be $5 on the date of grant. What is the amount of compensation expense for Year 1?
Business
1 answer:
Lilit [14]4 years ago
3 0

Answer:

The amount of Compensation expense to Year 1 is $153,333.

Explanation:

Stock options granted                                       92000

X Fair value on date of grant                          5

Total compensation expense                       460000

Years                                                                    3    

Compensation expense per year 1                       53333

Therefore, The amount of Compensation expense to Year 1 is $153,333.

You might be interested in
TB MC Qu. 7-69 Bellue Inc. manufactures a single product. Variable costing ... Bellue Inc. manufactures a single product. Variab
Greeley [361]

Answer:

$73,500

Explanation:

The computation of the absorption costing net operating income last year is shown below:

= Variable costing net operating income - inventory units × Fixed manufacturing overhead cost per unit

= $81,900 - 2,800 units × $3

= $81,900 - $8,400

= $73,500

We simply deduct the fixed manufacturing overhead cost from the variable costing net operating income to find out the absorption costing net operating income

4 0
4 years ago
In what way does the kettle falls five case illustrate a weakness of a federal system? choose the best answer.
almond37 [142]

The kettle falls five case illustrate a weakness of a federal system in such a way that f<span>ederalism limits political power and that it depends on compliance of state.</span>
<span>The federal system also aggravates the efficiency in awareness of Policies and its implementation. The kettle falls five case was very surprising.</span>

6 0
3 years ago
A company sells two products with information as follows: ​ A B Sales price per unit $12 $22 Variable cost per unit $10 $10The p
Tanya [424]

Answer:

Option (c) : $80,000

Explanation:

As per the data given in the question,

                                         A        B

Sales price                      $12     $22

Less: Variable cost         $10     $10

Contribution per unit      $2      $10

Time required in hours  0.25    0.50

Contribution per hour     $8      $20

Rank                                 2          1

Company should produce only product B to maximize the contribution.

Total contribution = $20 × 4,000

= $80,000

5 0
3 years ago
Crumbie, a cereal company, not only provides nutritional information on the packaging box of its products but also goes a step a
omeli [17]

The answer is: Consumerism

Consumerism refers to a view that encourage the purchase of goods and services. Companies can contribute to consumerism during their marketing campaign. During the campaign, they would do many things to make their products seems desirable , which would encourage the consumers to buy their products.

7 0
3 years ago
What is broad​ averaging, and what consequences can it have on​ costs?
mrs_skeptik [129]
 What is broad​ averaging, and what consequences can it have on​ costs? Broad averaging is when a company or organization spreads the cost of resources across different objects to help the individual products or services stay equal. When a company does this they are assigning the costs of resources uniformly to cost objects. Broad averaging directly relates to costs because they can mislead an organizations data reports by spreading out the costs inappropriately. <span>
</span>
7 0
3 years ago
Read 2 more answers
Other questions:
  • Lee worked on a global team for an American company, and all her work had to be completed in her second language, English. Somet
    13·1 answer
  • On January 1, the $3,000,000 par value bonds of Spitz Company with a carrying value of $3,000,000 are converted to 1,000,000 sha
    12·1 answer
  • Choose the correct description of variable and fixed costs. A. A variable cost is related to a particular cost object and can be
    9·1 answer
  • Procter &amp; gamble's tide laundry detergent has a predominant share of the detergent market in the united states. It makes $4.
    7·1 answer
  • Sleep problems are fairly common among both adults and children. TF
    15·2 answers
  • Executive pay has drawn public scrutiny in recent years. Which of the following statements best explains the reason?A. Top execu
    13·1 answer
  • In 2009 and 2010 Toyota had to recall millions of automobiles due to uncontrollable acceleration. This recall forced upper-level
    6·1 answer
  • Mr. Blatt: Expert consultants are sought after by management because they help executives make better decisions. That is why the
    5·1 answer
  • (1) State which marketing environment affected Xerox's operation. (1mks)
    13·1 answer
  • The first of two significant fiscal policy initiatives enacted by the government during the great recession, signed in february
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!