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
GarryVolchara [31]
3 years ago
15

On January 1, 2020, Swifty Corporation granted an employee an option to purchase 15000 shares of Swifty's $5 par value common st

ock at $18 per share. The Black-Scholes option pricing model determines total compensation expense to be $341000. The option became exercisable on December 31, 2021, after the employee completed two years of service. The market prices of Swifty's stock were as follows: January 1, 2020 $30 December 31, 2021 50 For 2021, should recognize compensation expense under the fair value method of
Business
1 answer:
nalin [4]3 years ago
6 0

Answer:

For 2021, should recognize compensation expense under the fair value method of $170,500

Explanation:

According to the given data we have the following:

option pricing model determines total compensation expense to be $341,000

Also, The option became exercisable on December 31, 2021, after the employee completed two years of service.

Therefore, in order to calculate the amount should recognize compensation expense we would have to make the following calculation:

amount should recognize compensation expense=$341,000/2

amount should recognize compensation expense=$170,500

For 2021, should recognize compensation expense under the fair value method of $170,500

You might be interested in
What role does the government play in the economy's circular flow?
mamaluj [8]
Depends are we talking capitalism, or socialism.

In capitalism there is no government intervention in the Economy, no laws, nothing.

In socialism, the government controls all of the economy, Tarriffs, Hours, etc.

So the government is supposed to play the middleman to help the people, but also the businesses, as such the united states had introduced less work hours, to help increase the productivity of the workers, which did indeed work.
4 0
3 years ago
It is important to identify and use only incremental cash flows in capital investment decisions:A) because they are the simplest
abruzzese [7]

Answer:

C) because ultimately it is the change in a firm's overall future cash flows that matter.

Explanation:

Under capital budgeting decisions, decisions are made with respect to addressing the questions like what is the benefit of selecting the project and investing on it.

If the answer to above question is raised income, then the project is selected. Accordingly the raised income in cash terms will be measured by increase in cash flows, that is incremental cash flows.

In simplest terms additional cash flows.

8 0
3 years ago
Intercontinental Inc., uses a periodic inventory system. At the end of Year 2, the account records provided the following inform
densk [106]

Answer:

Intercontinental Inc.

The amount of ending inventory is = $16,380

The cost of goods sold is = $37,810

Explanation:

a) Data and Calculations:

                                                                    Units      Unit Cost    Total Cost

Inventory, December 31, Year 1                  1,830          $ 6         $10,980

For Year 2: Purchase, March 21, Year 2   6,200          $ 5          31,000

Purchase, August 1, Year 2                        4,070          $ 3           12,210

Total cost of inventory                              12,100                        $54,190

Inventory, December 31, Year 2                2,910                          16,380

Cost of units sold                                       9,190                        $37,810

Cost of ending inventory, 2,910

= 1,830 at $6 = $10,980

 1,080 at $5 =     5,400

2,910           =  $16,380

Cost of goods sold = Cost of inventory available minus the cost of ending inventory

= $54,190 - $16,380

= $37,810

6 0
2 years ago
During what meeting did the delegates request each state write a constitution?
Tasya [4]
The delegates requested that each state write  a constitution during the Second Continental Congress.
6 0
3 years ago
Which of the following statements is NOT true regarding locationâ decisions?
Lilit [14]

Answer: The correct answer is choice b.

Explanation: Location is very important for businesses. Of the options presented, the only one that is incorrect is choice b - Once management is committed to a specific location, many costs become easy to reduce. This choice is incorrect. Even though management is committed to a location, it does not mean that it is easy to reduce costs. Even though they are committed to a location, it may be impossible to reduce costs.

8 0
3 years ago
Other questions:
  • Which type of bank account typically offers the least <br> interest?
    11·1 answer
  • The key to understanding the money creation process is the fact that:______.a. since the money supply excludes cash but includes
    15·2 answers
  • A Romer economy starts off with an initial stock of ideas equal to 100. The total population in the economy is 60, two of the wo
    14·1 answer
  • What happens if the fed sells $5 billion worth of treasury bonds on the open market?
    6·1 answer
  • Background Info: Tom finds a second personal loan option. This loan would also require him to repay the principal in one lump su
    13·2 answers
  • How much unused lending capacity does eternal savings have at step 4?
    12·1 answer
  • Which one of the following statements is correct? A) The lessor is primarily concerned with returning the asset at the end of th
    9·1 answer
  • Revenue is reported on the income statement in the period earned. The accounting concept supporting this reporting is
    14·1 answer
  • Which item shows a credit balance in the Trial Balance?
    9·2 answers
  • demand for an item is 2,000 units per year. each order placed costs $25; the annual cost to carry items in inventory is $4 each.
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!