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Arte-miy333 [17]
3 years ago
7

On January 1, year 1, a company grants 5,000 nonqualified stock options to an employee with a strike price of $3 per option and

fair value of $8 per option. All of the options vest at the end of five years from the grant date. At the end of year 1, the company's stock price was $10 per share. What amount of annual stock compensation cost should the company report for year 1?
Business
1 answer:
Sedaia [141]3 years ago
4 0

Answer:

$8,000

Explanation:

The following compensation cost shall be recognised in the accounts of the Company as at December 31, Year 1 in respect of employee share options:

5,000*8*1/5=$8,000

In the above calculation, 5000 represents number of share granted to employee,8 represent the fair value of the option at the grant dated and 1/5 represent first year of the 5-year requisite service condition for the exercise of share options.

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Martin Enterprises needs someone to supply it with 120,000 cartons of machine screws per year to support its manufacturing needs
ANEK [815]

Answer:

The Bid Price you should submit is $15.45

Explanation:

NPV = -795000 + 143000*(1-21%)/1.09^5-70000 + 70000/1.09^5 + ((120000*(P-10.15) - 435000 - 795000/5)*(1-21%) + 795000/5)/0.09*(1-1/1.09^5)

        => -795000 + 143000*(1-21%)/1.09^5 - 70000 + 70000/1.09^5 +((120000*(P-10.15) - 435000 - 795000/5)*(1-21%) + 795000/5)/0.09*(1-1/1.09^5) >=0

      =>P = 15.446118865171

Therefore, The Bid Price you should submit is $15.45

6 0
3 years ago
The replacement cost of an inventory item is below the net realizable value and above the net realizable value less the normal p
Andrews [41]

Answer:

D. Replacement cost.

Explanation:

As we know that the inventory should be recorded at the cost or market value whichever is lower

Given that

Original cost is less than the net realizable value subtract the profit margin

So we assume the following figures

Original cost $10

Net realizable value 9

Replacement cost 8

NRV less normal profit margin 7

As if we compare the original cost and replacement cost so the lower value is of replacement cost

hence, the same is to be considered

Therefore the correct option is D.

4 0
3 years ago
The most frequent reason that some corporations send their manufacturing operations outside of the united states is to find high
marishachu [46]

To find highly skilled workers who are specialized

5 0
3 years ago
American apparel makers complain to Congress about competition from China. Congress decides to impose either a tariff or a quota
Viefleur [7K]

Answer:

B) quota

Explanation:

A quota is a trade constraint imposed by government, which confines a nation's import or export within a certain period, or the amount or monetary value of the products. Nations use quotas to control trading volumes between them and the other nations in global trade. A tariff would put taxation on the Chinese's exports and it doesn't favour them.

4 0
3 years ago
The atomic number of an element represents the number of:
NeX [460]

Answer:

  • <u><em>protons</em></u>

<u><em></em></u>

Explanation:

By definition the<em> atomic number </em>of an element is the<em> number of protons.</em>

The protons are the positevely charged particles in the nucleus of the atom.

The atomic number of an element is what uniquely identifies it. There are 118 known elements and all of them are represented in the periodic table. Then, there are 118 different atomic numbers.

The elements are arranged in the periodic table in increasing order ot atomic number.

For instance:

  • The element with <em>atomic number</em> 1 is hydrogen (H). It is the first element in the periodic table, located in the upper left corner of the table. It has one <em>proton</em>. NONE  other element has just one proton.

  • The element with <em>atomic number</em> 2 is helium (He). It has two <em>protons</em>, is located at the upper right corner of the periodic table and NONE other element has just two protons.

  • The element with <em>atomic number</em> 118 is Oganesson (Og). It is the last element in the periodic table. It is located in the bottom right corner of the periodic table. It has 118 <em>protons</em> and NONE other element has atomic number 118.
4 0
3 years ago
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