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patriot [66]
3 years ago
8

On the grant date, January 1st, 2015, the stock was quoted on the stock exchange at $63 per share. The fair value of the options

on the grant date was estimated at $15 per option. The amounts of compensation expense ABC should recognize with respect to the options during 2015, 2016, and 2017 are:
Business
1 answer:
Dafna11 [192]3 years ago
3 0

Answer:

2015 $31,500

2016 $31,500

2017 $31,500

Explanation:

Number of Options in total × Fair Value of the Stock per option

Where

Number of Options in total = 63

Fair Value of the Stock per option =15

Hence:

(63*100) ×$15

=$6,300 ×$15

= $ 94,500

Compensation expense will be:

2015, 2016, and 2017 will give us 3 years

= $94,500/3

= $31,500 for 2015, 2016, and 2017

Fair value of the options is said to be evaluated on grant date and expenditure is been recognised in 3 years because the employee will be working for 3 years which is from year 2015 to 2017

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5 0
3 years ago
When Olga asks Sven if he wishes to sell his Harley motorcycle, he replies that he would not sell it "for less than $2,000." Olg
klemol [59]

Answer:

The correct answer is B. False

Explanation:

Sven never agreed to selling his motorcycle at the spot, he only made a statement that should he intends to sell it later, he will not sell it lesser than $2000.

6 0
3 years ago
For a sale, the original retail price of a particular shirt and the original retail price of a particular hat were both reduced
max2010maxim [7]

Answer:

Explanation:

Given:

Discount = original price × discount fraction

Discounted price = original price - discount

Discount fraction = 20%

= 20/100

A.

Original price of shirt = $x

Original price of hat = $(x + 10)

Discounted price of shirt = $x - $0.2x

= $0.8x

Discounted price of hat = $(x + 10)

- 0.2$(x + 10)

= $0.8 × (x + 10)

Difference of discounted price of hat to shirt = 0.8(x + 10) - 0.8x

= $8

B.

Original price of shirt = $x

Original price of hat = $ 1.5 × x

Discounted price of shirt = $x - $0.2x

= $0.8x

Discounted price of hat = $ 1.5 × x

- 0.2 × $ 1.5 × x

= $ 1.2x

Difference of discounted price of hat to shirt = 1.2x - 0.8x

= $ 0.4x

3 0
3 years ago
The purpose of a program is to provide listeners with
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8 0
4 years ago
Which of the following expressions is correct?A. economic profit = total revenue - implicit costsB. accounting profit = economic
Ilya [14]

Answer:

B. accounting profit = economic profit + implicit costs

Explanation:

Implicit cost are the cost that already incurred but is not necessary to report such as opportunity cost. Whereas explicit cost are those expenses which involve the financial transaction and it is being paid.

Accounting profit is calculated by deducting the explicit cost from the revenue as follow.

* Accounting Profit = Revenue - Explicit cost

Economic profit is calculated by deducting both explicit and implicit costs from revenue.

Economic Profit = Revenue - Explicit costs - Implicit cost

So, using Accounting profit formula we conclude that

Economic Profit = (Revenue - Explicit costs) - Implicit cost

Economic Profit = *Accounting profit - Implicit costs

Accounting Profit = Economic profit + implicit cost

7 0
3 years ago
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