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
horrorfan [7]
3 years ago
10

Ignoring taxes what is the effect on earnings in the year after the shares are granted to executives

Business
1 answer:
ipn [44]3 years ago
4 0

Answer: C. $40 million.

Explanation:

By granting them 15 million shares subject to forfeiture if employment is terminated within three years, the company is compensating them.

The total amount that they will be compensated with has to be apportioned over the 3 years as an expense that will reduce earnings per year.

Total compensation = No. of shares * fair value of shares

= 15,000,000 * 8

= $120,000,000

Apportioned over 3 years;

= 120,000,000/3

= $40,000,000

You might be interested in
The following information is available for the first month of operations of Lane Inc., a manufacturer of mechanical pencils:
aniked [119]

Answer:

a. Cost of goods sold = Sales - Gross profit

= $416,720 - $242,950

= $173,770

b. Direct materials cost = Materials purchased -Indirect materials - Materials inventory, end of period

= $128,350 - $45,220 - $17,090

= $66,060

c. Direct labor cost =Total manufacturing costs for the period - Direct materials cost - Factory overhead

= $239,610 - $66,060 - ($90,430 + $45,220 + $13,750)

= $239,610 - $66,060 - $149,380

=$239,610 - $215,440

=$24,170

7 0
3 years ago
Procter & Gamble determined that its Thermacare Heat Wrap was underperforming and lacked a desired level of growth potential
Kamila [148]

Answer:

Decline

Explanation:

there are four stages of product life cycle

1. introduction

2. growth

3. maturity

4.  decline

In decline stage growth declines as a result of decrease in demand. The best decision at this stage is to divest the asset. Since Thermacare heat wrap was under performing it must be in decline stage and divestment of the brand was done by Procter and Gamble

3 0
3 years ago
Once every __________, the census bureau does a comprehensive survey of housing and residential finance. month 5 years 10 years
amm1812
Hello,

Once every 10 years, the Census Bureau does a comprehensive survey of housing and residential finance.

Hope this helps! :)
7 0
3 years ago
Which is the BEST definition of marginal benefit?
Liono4ka [1.6K]

Answer:

the possible income from producing an additional item.

Explanation:

hope this helps if not let me know

6 0
2 years ago
An increase in taxes of a specific amount will have a smaller impact on the equilibrium gdp than will a decline in government sp
sergejj [24]
Raising taxes slows/discourages the economy
7 0
3 years ago
Other questions:
  • The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y6: Cash balance
    5·1 answer
  • Pestiferous Manufacturing produces a chemical pesticide and uses process costing. There are three processing departmentslong das
    6·1 answer
  • The Yurdone Corporation wants to set up a private cemetery business. According to the CFO, Barry M. Deep, business is "looking u
    15·1 answer
  • Assume that the company that John and Tina work for wants to give the $50 million to the political campaigns. Which of the follo
    15·1 answer
  • Southern California Publishing Company is trying to decide whether to revise its popular textbook, Financial Psychoanalysis Made
    13·1 answer
  • Which of the following would not be included in calculating the incremental cash flow for a project? The firm expects sales of t
    5·1 answer
  • The ability to borrow money is called
    7·2 answers
  • Your task is to study and examine precisely what the project you are involved with is trying to accomplish, in order to set defi
    13·1 answer
  • When Corey runs out of shampoo he buys whatever brand is on sale at his local CVS drugstore. What is his level of involvement in
    5·1 answer
  • A company reports the following income statement and balance sheet information for the current year:
    7·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!