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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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Answer:

Explanation:

These programs are usually effective and successful because the current employees that provide for this program tend to be the more highly efficient employees in the company and they tend to recruit individuals who they personally know as responsible and qualified. This therefore not only brings in qualified candidates but also saves the company money on recruiters and trainers, since the employee themselves can train the new recruit.

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Negotiate a venue for a year end function​
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3 years ago
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4 0
4 years ago
During the formation of a business, it is decided that an S-Corporation will be used. Of the following choices, which are key co
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