Answer:
$1,000,000
Explanation:
Gallagher Corporation
Stock option × Option estimated fair value /Numbers of years
Stock option $400,000
Option estimated fair value $10
Numbers of years 4
Hence:
($400,000 × $10) / 4 years
=$4,000,000/4years
= $1,000,000
Therefore pretax compensation expense for year 1 will be $1,000,000
If she sells 3 she's not getting her money back
3×26=78
But if she sells more than 3 then she's getting her money back and more
Answer:
d. $4,000 credit to common stock
Explanation:
The journal entry is shown below:
Since the company issued 400 shares for $10 per share
So, the journal entry is
Cash Dr $4,000
To common stock $4,000
(Being the issuance of the common stock is recorded)
here the cash is debited as it increased the assets and credited the common stock as it also increased the equity account
D greater government expenditures for transfer payment.
Answer:
False
Explanation:
When supply of loanable funds increases, the borrowers have more sources of availing loans. Such a situation leads to a competition among suppliers of loanable funds.
Thus, to attract borrowers, suppliers have to lower the rate of interest on loans.
Thus, Borrowers will not bid up the interest rate in such a scenario and would rather bid down the interest rate.