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Alenkinab [10]
3 years ago
9

On January 1, 2021, M Company granted 95,000 stock options to certain executives. The options are exercisable no sooner than Dec

ember 31, 2023, and expire on January 1, 2027. Each option can be exercised to acquire one share of $1 par common stock for $12. An option-pricing model estimates the fair value of the options to be $5 on the date of grant. What amount should M recognize as compensation expense for 2021
Business
1 answer:
marysya [2.9K]3 years ago
3 0

Answer:

$158,333 approx

Explanation:

The computation of compensation expense is shown below:-

Compensation expense = (Number of options expected to be exercised × Fair value) ÷ Vesting period (From 1 Jan 2024 to 31 Dec 2026)

= (95,000 × $5) ÷ 3 years

= $475,000 ÷ 3 years

= $158,333 approx

Therefore for computing the compensation expenses we simply applied the above formula.

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Pension Plan Entries Yuri Co. operates a chain of gift shops. The company maintains a defined contribution pension plan for its
Andrej [43]

Answer:

December 31

Dr Pension expense $182,100

Cr Unfunded pension Liabiltiy $182,100

January 15

Dr Unfunded pension Liabiltiy $182,100

Cr Cash $182,100

Explanation:

Preparation of the entry to record the accrued pension liability payment to the funding agent on January 15

December 31

Dr Pension expense $182,100

Cr Unfunded pension Liabiltiy $182,100

(Being to record quarterly pension Liabiltiy)

January 15

Dr Unfunded pension Liabiltiy $182,100

Cr Cash $182,100

( Being to record the accrued pension liability payment to the funding agent)

5 0
3 years ago
When Stuart sold a computer network to a Fortune 500 company, he often called on the company's purchasing department to see if e
Semmy [17]

Answer: Relationship selling

Explanation:

Stuart in his sales transaction with Fortune 500 company, is carrying out relationship selling, where the seller tries to make sales by creating a friendly relationship with their buyers. Relationship selling helps the buyer to easily relate with the seller, thereby making sales very easy to transact.

7 0
3 years ago
Carlotta Rodriguez purchased six bushes for $19.27 each, a porch swing for $88.22, and a gas grill for $321.77. She must pay the
puteri [66]
19.27+88.22+321.77=429.26

4.5+2=6.5

429.26 x 1.065 = 457.1619

Answer = $457.16
5 0
4 years ago
Read 2 more answers
Nico is saving money for his college education. He invests some money at 99​%, and ​$17001700 less than that amount at 4 %.4%. T
Rufina [12.5K]

Answer:

Nico invest $2500 at 9% interest rate and $800 at 4% interest rate.

Explanation:

He invests some money at 9​%, and ​$1700 less than that amount at 4 %.

Let Nico invest $x at 9%.

It means he invest $( x-1700) at 4%.

The investments produced a total of ​$257 interest in 1 yr.

x\times \frac{9}{100}+(x-1700)\times \frac{4}{100}=257

0.09x+(x-1700)0.04=257

0.09x+0.04x-68=257

0.13x-68=257

Add 68 on both sides.

0.13x=257+68

0.13x=325

Divide both sides by 0.13.

x=2500

Nico invest $2500 at 9% interest rate.

x-1700=2500-1700=800

Nico invest $800 at 4% interest rate.

Therefore Nico invest $2500 at 9% interest rate and $800 at 4% interest rate.

5 0
3 years ago
Andrew volunteered for the American Red Cross after a recent hurricane. He traveled 200 miles and helped the victims of the disa
Lyrx [107]

Answer: 1.

Mileage for the 200 miles he drove to the ravaged area

2.$1,500 charged to the credit card during the year

3.The cost of lodging while he is volunteering

Explanation:

3 0
3 years ago
Read 2 more answers
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