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
Lana71 [14]
2 years ago
5

Wall Drugs offered an incentive stock option plan to its employees. On January 1, 2021, options were granted for 75,000 $1 par c

ommon shares. The exercise price equals the $6 market price of the common stock on the grant date. The options cannot be exercised before January 1, 2024, and expire December 31, 2025. Each option has a fair value of $1 based on an option pricing model. Which is the correct entry to record compensation expense for the year 2021
Business
1 answer:
harkovskaia [24]2 years ago
5 0

Answer:

Dr Compensation expense $12,500

Cr Paid-in capital - stock options $12,500

Explanation:

Preparation of the correct entry to record compensation expense for the year 2021

Based on the information given the correct journal entry to record compensation expense for the year 2021 is :

Dr Compensation expense $12,500

Cr Paid-in capital - stock options $12,500

[(75,000 x $1)/6]

(Being to record compensation expense for the year 2021)

You might be interested in
Suppose the revenue from producing​ (and selling) x units of a product is given by Upper R (x )equals 10 x minus . 04 x squared
Volgvan

Answer:

marginal revenue is -6

and production levels 200, 50  

Explanation:

given data

R(x) = 10 x - 0.04 x²  

solution

we have given

R(x) = 10 x - 0.04 x²  

so here R'(x)  is

R'(x) = 10(1) - 0.4 (2x)  

R'(x) = 10 - 0.8 x ....................1

so here at x is 20 marginal revenue will be

R'(20) = 10 - 0.8(20)

R'(20) =  10 - 16

R'(20) = - 6

and

when revenue  is ​$400

R(x) = 400

400 = 10 x - 0.04 x²  

x= 200, 50

7 0
3 years ago
Owners of defective used cars have more information about the condition of their vehicles than potential buyers of those used ca
lakkis [162]

Answer:

D. asymmetric information.

Explanation:

Owners of defective used cars have more information about the condition of their vehicles than potential buyers of those used cars. This is an example of an asymmetric information.

An asymmetric information can be defined as a situation wherein there's an imperfect flow of information or knowledge between the buyer and the seller of a product; sellers having more knowledge than the buyer of a product.

4 0
3 years ago
The Monster Truck operates several specialty vehicles that provide hot food and beverages for firms that have workers employed i
GaryK [48]

Answer:

The answer is 20.55 days

Explanation:

Solution

Given that:

Annual sales =$627,200

Average accounts receivable =$35,300

Now

The accounts turnover ratio (receivable) = Sales/Average accounts receivable

Accounts receivable turnover ratio = $627,200/$35.300

=17.76 times

Thus

Number of days payment receives = 365/ Accounts receivable turnover ratio =365 days/17.76 times

=20.55 days

Therefore The company takes 20.55 days to get payment for its services

7 0
3 years ago
Let's assume a project has high up-front costs, and high benefits that occur far into the future. If the project uses a higher i
vivado [14]
Uwiwjsnsndn c c c cnxkskwkwew I wewwwwwOh hey there can I send it in my spam spam
7 0
3 years ago
A loss from the disposal of a significant component of a business should be reported separately in the income statement: after i
wlad13 [49]

<u>Answer:</u> Option 1 After income from continuing operations.

<u>Explanation:</u>

A disposal account shows the profit or loss from the sale of any asset. When the sale price is higher than the book value of the component then it is a gain. When the sale price is less than book value then it is a loss.

Loss from the sale of component will reduce the income of the business. When there is a loss it is debited in the income statement. This appears below the operations income and it is deducted from the revenue to show the actual value of the revenue.

8 0
3 years ago
Other questions:
  • Wassim Masood has been the webmaster for Woori Finance only ten days when Woori's website was flooded with access attempts. Wass
    9·1 answer
  • Business products that are purchased routinely, do not become part of finished goods, and are expense items rather than capital
    13·1 answer
  • The only difference between variable and absorption costing is the expensing of ________.A) direct manufacturing costs B) variab
    12·1 answer
  • The government document that grants permission to establish a corporation is called a
    13·1 answer
  • _____ refers to what each party gets in exchange for his or her promise under a contract.
    13·1 answer
  • If you deposit $100 of currency into a demand deposit at a bank, this action by itself
    7·1 answer
  • If the expected sales volume for the current period is 9,000 units, the estimated the beginning inventory is 200 units and the d
    8·1 answer
  • The variable overhead spending variance, the fixed overhead spending variance, and the variable overhead efficiency variance can
    11·1 answer
  • A manager’s position in the organization, ability to give out rewards, and other factors give the manager ____________, which is
    12·1 answer
  • A customer has a margin account that shows a market value of $190,000 and a debit balance of $90,000. in addition, the account h
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!