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
IrinaVladis [17]
2 years ago
13

On January 1, 2021, G Corp. granted stock options to key employees for the purchase of 87,000 shares of the company's common sto

ck at $26 per share. The options are intended to compensate employees for the next two years. The options are exercisable within a four-year period beginning January 1, 2023, by the grantees still in the employ of the company. No options were terminated during 2021, but the company does have an experience of 6% forfeitures over the life of the stock options. The market price of the common stock was $32 per share at the date of the grant. G Corp. used the Binomial pricing model and estimated the fair value of each of the options at $8. What amount should G charge to compensation expense for the year ended December 31, 2021
Business
1 answer:
vredina [299]2 years ago
8 0

Answer:

the  compensation expense for the year is $327,120

Explanation:

The computation of the compensation expense for the year is given below:

= (Number of stock options to be purchased × (1 - forefeiture percentage) × fair value per option)) ÷ 2

= (87,000 shares × (1 - 0.06) × $8)) ÷ 2

= $327,120

Hence, the  compensation expense for the year is $327,120

The same should be considered and relevant too

You might be interested in
Which is the correct way to write $450.05 in words on a check?
zysi [14]
According to the regulations in the united states, the correct way to write
 $ 450.05 in words on check would be :

Four hundred fifty and 05/100

hope this helps
8 0
2 years ago
Read 2 more answers
A company's gross profit was $118,350 and its net sales were $466,300. its gross margin ratio equals:
ladessa [460]

The gross margin ratio is a percentage resulting from dividing the amount of a company's gross profit by the amount of its net sales. In this case it would be 118,350/466,300 = 25.38%

3 0
2 years ago
One of the purposes of the US judicial system is to _____.
Norma-Jean [14]

the answer is B, resolve conflicts peacefully

5 0
2 years ago
Read 2 more answers
Why should you study more difficult topics first?
nexus9112 [7]

Answer:

b

Explanation:

8 0
2 years ago
Read 2 more answers
A company with a labor agreement under which union membership cannot be required as a condition of employment is considered a
frez [133]
A company with a labor agreement under which union membership cannot be required as a condition of employment is considered an open shop.
This means that the employees do not have to join a trade union in order to work there at this particular company. So regardless of the fact whether these workers are members of the union or not, they will be employed and paid equally.
7 0
3 years ago
Other questions:
  • On September 1, Boylan Office Supply had an inventory of 30 calculators at a cost of $18 each. The company uses a perpetual inve
    12·1 answer
  • The financial statement effects of the budgeting process are summarized on the cash budget and the capital expenditures budget.
    9·1 answer
  • Company policy for internal control should include all of the following except
    14·1 answer
  • Address You, a fancy dress manufacturer, sold a dress for $8,000 on credit. The cost of producing this dress was $1,000. First,
    7·1 answer
  • g Suppose Phil and Miss Kay are the only consumers in the market. If the price is $12, then the market quantity demanded is Ques
    5·1 answer
  • In the instrumental exchange stage, _____. A.your primary concern will be to avoid trouble for yourself B. you will stick to you
    13·1 answer
  • On June 10, 20X8, Tower Corporation acquired 100 percent of Brown Company's common stock. Summarized balance sheet data for the
    5·1 answer
  • RadioWaves, Inc. is a manufacturer of weather radios. It has two departments: assembly and testing. In March 2018, the company i
    10·1 answer
  • According to a recent study, nearly all business professionals expect an email response within Multiple choice question. 1 week.
    14·1 answer
  • Central Supply purchased a new printer for $30,000. The printer is expected to operate for eight (8) years, after which it will
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!