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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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A grocery store has three open checkout lanes. On average, 45 shoppers arrive at these lanes per hour. The coefficient of variat
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The percentage decrease in utilization is 83.33%

Explanation:

According to the data, we have the following:

Coefficient of variance, m = 3

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Therefore, in order to calculate the percentage decrease in utilization when one more checkout lane is added to the system, we have to use the following formula:

So, percentage decrease in utilization = ra / (m.re)

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Question 3 of 10
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Answer:

C. Just managers. I hope this helps

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Martin puts his weekly paycheck into his checking account. In which column should he write the value of his paycheck? A checking
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deposits

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8 0
2 years ago
The standard cost of product 777 includes 2.0 units of direct materials at $6.00 per unit. During August, the company bought 29,
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Answer and Explanation:

The computation is shown below:

Total material variance = Actual quantity × Actual rate - Standard quantity × Standard rate

= 29000 × $6.3 - (16,000 units × 2) × $6

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Material price variance = Actual quantity × Actual price - Actual quantity × Standard price

= (29,000 units × $6.3) - (29,000 units × $6)

= $182,700 - $174,000

= $8,700 unfavorable  

Material quantity variance =  Standard quantity × Actual quantity - Standard rate × Standard quantity  

= $6 × 29,000 units - $6 × (16,000 units × 2)

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The favorable is when the standard cost is more than the actual one while the unfavorable is when the standard cost is less than the actual one

8 0
3 years ago
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