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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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Core Corporation reported current earnings and profits of $250,000. It distributed a buildingwith an adjusted basis to Core of $
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Answer:

B. $140,000

Explanation:

An adjusted basis refers to the total cost of acquiring an asset. In include transportation, installing, commissions, and all other relevant fees. The fair market value represents the price an asset can fetch if sold in the market.  It is the amount that a company will receive if it were to dispose of an asset in the market.

Shareholders will be the fair market value adjusted for the mortgage balance.

=$ 230,000 - $ 90,000

=$140,000

8 0
3 years ago
Jordan's Ice Creams is strategically located near a university. After realizing that most of its customers, who are mostly stude
olga2289 [7]

Answer:

D) Focused differentiation strategy.

Explanation:

A focus differentiation strategy is meant to satisfy very different and specific needs of their customers. It is not just about making a different product that customers may like, it is about making very specific products that appeal to specific clients.

Jordan's Ice Cream is offering hundreds of customized products, each customized product appealing to a small number of clients. In this case, making unique ice cream combinations is not that expensive, but usually this type of strategy works well in very luxurious products.

7 0
3 years ago
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Kari would like to make a down payment on a house. She currently has $7000. What interest rate must Kari receive for her investm
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Answer:

10.29%

Explanation:

Rule of 72 can be defined as a metric used to determine the time it will take to double an investment based on its growth rate.

To find the interest rate Kari must receive for her investment to double in 7 years, we would use the Rule of 72;

Rule of 72 = 72/7

Rule of 72 = 10.29%

Therefore, Kari must receive an interest rate of 10.29% for her investment to double in 7 years.

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2 years ago
A student claims that he can correctly identify whether a person is a business major or an agriculture major by the way the pers
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3 years ago
If a supply chain manager can reduce inventory while keeping the flow rate constant, what does little's law predict will happen
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If a supply chain manager can reduce inventory while keeping the flow rate constant, little's law predicts flow time will go down.

Little's Law is a theorem that calculates the average number of items in a stationary queuing system based on an item's average waiting time and the average number of items arriving at the system per unit of time.

The law establishes a straightforward and obvious method for evaluating the efficiency of queuing systems.

The notion is extremely important for business operations since it states that the number of items in the queuing system is determined primarily by two essential variables and is unaffected by other factors such as service distribution or service order.

Hence, the answer is that the flow time will go down.

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1 year ago
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