Answer:
Ellison Company should recognize compensation expense on its books in the amount of $600
Explanation:
Solution
The transaction in the books of Ellison Company during the period of July 1st 2010 to December 31st 2010
On July 1st the share value was $30 *400 = 12000
On October 1st 2010 sold at $ 36 * 400 = 14400
The gain on this transaction was = $2,400
31st July 2010, less compensation expenses =$ 1,800
The fair vale to be recorded as a gain = $ 600
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Answer:
Confirmation bias
Explanation:
The reason is that the business managers who always see the one side of the story are biased because they don't see what the person whom they rejected was doing with its life and capabilities that he developed that might be the best resouce for the company. This consecutive result which forms a perception that the person is right is often called confirmation biasness.
