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Yanka [14]
3 years ago
13

On June 1, year 2, Oak Corp. granted stock options to certain key employees as additional compensation. The options were for 1,0

00 shares of Oak's $2 par value common stock at an option price of $15 per share. Market price of this stock on June 1, year 2, was $20 per share. The options were exercisable beginning January 2, year 3, and expire on December 31, year 4. On April 1, year 3, when Oak's stock was trading at $21 per share, all the options were exercised. Oak uses the intrinsic method of accounting for stock option plans. What amount of pretax compensation should Oak report in year 2 in connection with the options
Business
1 answer:
Dimas [21]3 years ago
3 0

Answer:

Since the options were granted at an exercise price of $15 when the market value of the shares was $20, total compensation under the intrinsic method would be $5 per share on 1,000 shares or $5,000. Since the options are exercisable on 1/2/X2, the $5,000 in compensation would all be recognized n 20X1.

Explanation:

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The real interest rate is equal to the:_________
ahrayia [7]

Answer:

D. nominal interest rate minus the inflation rate.

Explanation:

The real interest rate has been adjusted for inflation.

If nominal interest rate is 6% and inflation is 2%, then the real interest rate would be 4%.

I hope my answer helps you

4 0
3 years ago
Calculation of Cost of Goods Sold: Periodic Inventory System with Sales Returns and Allowances
andrey2020 [161]

Answer:

 73,450  COGS

Explanation:

From the beginning inventory we add up purchase and freight cost and subtract the return made to the suplier and discount and allowance granted.

This will be the total cost available for sale.

Then we subtract the ending inventory to get the COGS

  27,000 beginning inventory

+ 78,000 purchases

+      350 freight-in

-   3,900 return and allowance

<u>-   6,000 </u>discount  

 95,450   good available for sale

<u>- 22,000 </u>ending inventory

 73,450  COGS

The sales return impact the sales revenue not the COGS

7 0
3 years ago
A __________ is a written document that details the business idea, the target market and the business's competitive advantage, f
Alina [70]

Answer:

business plan

Explanation:

A<u> business plan</u> is a written document that details the business idea, the target market and the business's competitive advantage, financial resources available for the business, and the qualification of the management.

7 0
3 years ago
An automobile dealer sells service contracts. The contracts stipulate that the dealer will perform specific repairs on covered v
stiv31 [10]

Answer:

a. yes no

Explanation:

At the time of contract the service revenue is not been realized because service is been perform and dealer made a promise to perform services in future. So the revenue will be deferred and will be earned or realized when service will be performed in the future. Deferred revenue will be effected and service revenue will not be effected at the time of contract.

4 0
3 years ago
HELPPP MEEE ILL MARK YOU BRAINLIEST
kakasveta [241]

Answer:

salary is a lump sum for work and fixed rate is a fixed rate that changes with amount of hours worked.

Explanation:

salary is a lump sum for work and fixed rate is a fixed rate that changes with amount of hours worked.

Brainliest appreciated!

8 0
3 years ago
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