1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Mrrafil [7]
3 years ago
5

On January​ 1, Year​ 1, Gallagher Corporation issued 400 comma 000 stock options for 400 comma 000 shares to a division manager.

The options have an estimated fair value of $ 10 each. These options are not exercisable unless division revenue increases by​ 8% in four years. Gallagher estimates that it is probable that the goal will be achieved. What is pretax compensation expense for year​ 1?g
Business
1 answer:
masha68 [24]3 years ago
4 0

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

You might be interested in
Chipman Sofware recently reported the following amounts in its unadjusted trial balance at its year-end:
gregori [183]

Answer:

What is allowance for doubtful debt?

This represents management's estimate of the amount of accounts receivable that will not be paid by customers. They are amount owed by debtors, whose likelihood of collection is not certain.

1 Bad debts expense Dr   ($18,000 × 0.25%)  $45  

              To Allowance for Doubtful Accounts $45

(Being the bad debt expense is recorded)

2.  Bad debts expense $45        

          ($72 - $27)

              To Allowance for Doubtful Accounts   $45

(Being the bad debt expense is recorded)

3 Bad debts expense    $105      

           ($72 + $33)

           To Allowance for Doubtful Accounts $105

(Being the bad debt expense is recorded)

4 Allowance for Doubtful Accounts $15  

           To Accounts Receivable  $15

(Being the allowance for doubtful accounts is recorded)

Learn more about allowance for doubtful debts here : brainly.com/question/25687295

Explanation:

4 0
2 years ago
For each market listed below, determine whether it is best characterized as a Cournot oligopoly, Stackelberg oligopoly, or Bertr
Semenov [28]

Answer: A. Cournot Oligopoly B. Stackelberg Oligopoly C. Bertrand Oligopoly

Explanation:

Cournot Model: In Cournot model, firms produce output independently and then set their prices. In this type of model, the products are typically standardized.

Stackelberg Model: In Stackelberg model, there is one firm who is quite dominant and that firm sets the price. Whereas, other firms or the competing lower firms usually follow the price leader.

Bertrand Model: In this model, firms have interaction with buyers in order to set prices and quantities.

3 0
3 years ago
Assume that because of a new law, the types of significant transactions a partnership engages in are no longer lawful. two of th
hammer [34]
No thsy will have to sell their share
3 0
3 years ago
Olivia was returning from her break when her boss saw her and stated, "I noticed your break was especially long this afternoon."
mamaluj [8]

The given change in Olivia’s work presentation happened because of Filtering

<u>Explanation: </u>

A communication barrier is something that stops us from accessing and interpreting communications that other people use to communicate their knowledge, thoughts, and ideas.

Filtering is a transmitter that handles information in this way the recipient would be included more favorably. The number of rates in an organization's framework is the main factor in determining of the filtering. Filtering also happens when the recipient of the message enables multiple persons to pass the information before reaching their final destination.

A Few examples of filtering have included a manager who leaves her boss, the vice-president, in the midst of the bad news, with the poor sales statistics from her division.

6 0
3 years ago
Which are objects that fulfill the needs and wants of consumers?
Lostsunrise [7]
The objects that fulfill the needs and wants of consumers are products.
7 0
3 years ago
Other questions:
  • How can money in a savings account grow
    13·1 answer
  • What is Eduloan and is it a good choice is it affordable...Why should we choose Eduloan and how does it work
    13·1 answer
  • The physician has asked the medical assistant to provide patient education for hypertension. What is the best way to provide thi
    8·1 answer
  • One of Tony Hsieh’s most important roles now is to act as a cultural leader for Zappos. Using your knowledge of cultural leaders
    7·1 answer
  • Roger remembers from a business class he took years ago in college that there are several business forms to choose from. Each fo
    10·1 answer
  • Which of the following is an unethical behavior for a salesperson?
    15·2 answers
  • A product is considered to be rivalrous if your consumption of the product reduces the quantity available for others to consume.
    11·2 answers
  • Sheridan, Inc. is a calendar-year corporation whose financial statements for 2020 and 2021 included errors as follows: Year Endi
    6·1 answer
  • Looking at her report, jennifer realizes that her bank raised the rate on her last balance. Which federal legislation can she re
    7·1 answer
  • He wacc is the appropriate discount rate for use with ______ projects but should be adjusted ______ for higher risk ones
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!