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vodomira [7]
3 years ago
7

Assume that Amazon has a stock-option plan for top management. Each stock option represents the right to purchase a share of Ama

zon $1 par value common stock in the future at a price equal to the fair value of the stock at the date of the grant. Amazon has 4,700 stock options outstanding, which were granted at the beginning of 2020. The following data relate to the option grant.
Exercise price for options $40
Market price at grant date (January 1, 2020) $40
Fair value of options at grant date (January 1, 2020) $7
Service period 5 years
Required:
1. Prepare the journal entries for the first year of the stock-option plan.
Business
1 answer:
Kryger [21]3 years ago
7 0

Explanation:

The Journal entry is given below:-

1 January 2020             No Entry

31 December 2020       Compensation Expense Dr,         6,580

                                              To, Paid-In-Capital                         6,580

(Being the compensation expense stock-option plan is recorded)

Working Note:-

Compensation Expense

= $7 × 4,700 ÷ 5

= $7 × 940

= $6,580

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cestrela7 [59]

Assuming Raleigh BBQ has $48,000 in current assets and $39,000 in current liabilities. This refers to as working capital management.

<h3>What is Working Capital Management?</h3>

Working capital management can be defined as the way in which a company or an organization ensures that both their current asset and current liabilities are put in use effectively and efficiently.

A company who make use of working capital management  as a strategy  will tend to ensure that their liabilities does not exceed their assets so as to maintain the company financial health.

Therefore this refers to as working capital management.

Learn more about working capital management here:brainly.com/question/14736085

7 0
3 years ago
The division of labor means that:_______.a) labor markets are geographically segmented. b) unskilled workers outnumber skilled w
rewona [7]

Answer:

c) workers specialize in various production tasks.

Explanation:

The division of labor means that people, instead of performing a large number of tasks by themselves, only perform a few, or a single task, for which they specialize.

The division of labor is a characteristic of the modern economy, and without it, the levels of production and technology that we have today would not be possible.

4 0
4 years ago
Assume that Zambia has a domestic investment of $1500 billion, private domestic savings of $3000 billion, and a government defic
nexus9112 [7]

Answer:

$1,500

Explanation:

Domestic investment = $1500 billion

Private domestic savings = $3000 billion

Government deficit = $2000 billion

Rise in government spending = $1000 billion

Now,

Trade deficit =

Domestic investment - Private domestic saving - Government savings

also,

Total Government deficits = $2,000 + $1000

= $3,000

and,

Government savings = - Government deficits

= - $3,000

Now we know government deficit is 3000 billion and if spending increases further 1000 billion, the government deficit will be 4000 billion

thus,

Trade deficit = $1,500 - $3,000 - (- $3,000)

or

= $1,500

4 0
3 years ago
Identify three of many shared ethical standards among businesses
Orlov [11]

Answer:

✓ Social responsibility, fair pricing, truth in advertising

Explanation:

4 0
3 years ago
Pedro, a sales manager, asks Rafael, one of his new recruits, to send him a sales report by EOD (end of day). Rafael intends on
Tom [10]

Answer:

Bypassing

Explanation:

Bypassing in the business communication means there is a miscommunication because the intended person derived incorrect meaning that result in misunderstanding. In the given scenario, the Rafael derived incorrect meaning of the sending report by the end of the day which he thought, he can send the report by leaving office and finishing it at home. However the manager meant that the report would be finished today within the business hours. So bypassing is the correct answer.

5 0
4 years ago
Read 2 more answers
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