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Leokris [45]
3 years ago
8

Martin received a nonstatutory stock option from his employer on January 1, 2018. The option gives him the right to purchase 100

shares of his company's stock at $11 per share. The option is not traded on an established market, and its value could not be readily determined when it was granted. Although Martin did not exercise his option during the tax year, the value of the stock increased after he received the option. On December 31, 2018, the stock was trading at $20 per share. How much compensation does Martin include in his 2018 income as a result of being granted this option?a.$0 b.$900 c.$1,100 d.$2,000
Business
1 answer:
Ksju [112]3 years ago
5 0

Answer:

Correct answer is option A

$0

Explanation:

In case of non-statutory stock option, income which is fair market value less any cost incurred for stock options, is included when the stock options are exercised.

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At year-end (December 31), Chan Company estimates its bad debts as 0.50% of its annual credit sales of $823,000. Chan records it
Rudiy27

Explanation:

The journal entries are as follows

On December 31

Bad debt expense Dr  $4,115        ($823,000 × 0.50%)

       To Allowance for doubtful debts  $4,115

(Being the bad debt expense is recorded)      

On Feb 01

Allowance for doubtful debts Dr $412

      To Account receivable $412

(Being the uncollectible amount is recorded)

On June 5

Account receivable $412

          To Allowance for doubtful debts Dr $412

(Being the  uncollectible amount is recorded)

On June 5

Cash Dr $412

   To Account receivable $412

(Being the cash received is recorded)

5 0
2 years ago
Later, the teaching assistant in Bob's chemistry course gives him some advice. "Based on past experience," the teaching assistan
77julia77 [94]

Answer:

1 hour working on problems, 3 hours reading

Explanation:

the question is not complete:

Bob is a hard-working college freshman. One Tuesday, he decides to work nonstop until he has answered 200 practice problems for his chemistry course. He starts work at 8:00 AM and uses a table to keep track of his progress throughout the day. He notices that as he gets tired, it takes him longer to solve each problem.

Time                   Total Problems Answered       Marginal gain

8:00 AM                         0    

9:00 AM                        80                                        80

10:00 AM                     140                                        60

11:00 AM                      180                                        40

Noon                          200                                        20

Since Bob's is able to answer more than 70 questions per hours only during one hour (from 8 to 9 AM), he can benefit more from reading the next 3 hours. Reading would be equivalent to answering 210 questions, while Bob was only able to answer 120 more questions in the following 3 hours.

6 0
2 years ago
1. Ira Schwab opens up a Schwab IRA and places $2,000 in his retirement account at the beginning of each year for 10 years. He b
s2008m [1.1K]

Answer:

He will have $102,979 in his retirement account in 10 years.

Explanation:

Annual Payment = $2,000

Number of Year = n = 10

Interest rate = i = 5%

Compounded Quarterly

Future value after 10 years

FV = A [ ( ( 1 + ( r / m )^mt ) - 1 / ( r / m )

FV = $2,000 [ ( ( 1 + ( 0.05 / 4 )^40 ) - 1 / ( 0.05 / 4 )

Future value = $102,979

So, Ira Schwab will have $102,979 in his retirement account in 10 years.

5 0
2 years ago
Henkes Corporation bases its predetermined overhead rate on the estimated labor-hours for the upcoming year. At the beginning of
gizmo_the_mogwai [7]

Answer:

$27.2

Explanation:

First we have to calculate the total estimated manufacturing overheads which shall be determined as follows:

Estimated total manufacturing overheads=Variable manufacturing overhead+ Fixed manufacturing overheads

Variable manufacturing overhead=Estimated labour hours*manufacturing overhead per labour hour

                                                        =75,000*$10.70=$802,500

Fixed manufacturing overheads=$1,237,500

Estimated total manufacturing overheads=$802,50+$1,237,500

                                                                    =$2,040,000

Now we will compute the predetermined overhead rate which shall be determined using the following formula:

Predetermined overhead rate=Estimated total manufacturing overheads/Estimated labour hours

Predetermined overhead rate=$2,040,000/75,000=$27.2

3 0
3 years ago
What does someone need to do before they can become certified, licensed, or registered?
konstantin123 [22]

school or expirence and the knowledge to do it and th ejob right


8 0
3 years ago
Read 2 more answers
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