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tamaranim1 [39]
3 years ago
6

White company is a calendar-year firm with operations in several countries. at january 1, 2018, the company had issued 10,000 ex

ecutive stock options permitting executives to buy 10,000 shares of stock for $25. the vesting schedule is 30% the first year, 30% the second year, and 40% the third year (graded-vesting). the fair value of the options is estimated as follows: vesting date amount vesting fair value per option dec. 31, 2018 30 % $ 2.80 dec. 31, 2019 30 % $ 3.00 dec. 31, 2020 40 % $ 3.75 what is the compensation expense related to the options to be recorded in 2019?
Business
1 answer:
Juli2301 [7.4K]3 years ago
5 0

Answer:

The compensation expense related to the options to be recorded in 2019 is $9,500.

Explanation:

The relevant fair value at Dec. 31, 2019 = (10,000 × 30% × $3) × (1/2) = $9,000 × 0.5 = $4,500

The relevant fair value at Dec. 31, 2020 = (10,000 × 40% × $3.75) × (1/3) = $15,000 × (1/3) = $5,000

Compensation expense = $4,500 + $5,000 = $9,500

Therefore, the compensation expense related to the options to be recorded in 2019 is $9,500.

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In job analysis, what is quite important is that it is the job that is assessed and not the person filling the job role whilst job analysis data may be retrieved by human resources(HR) from the person currently on the job role . Examples of areas where job analysis may be applied in an organization are in risk management, career and succession plan, recruitment and selection etc.

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