Question
FX Services granted 17.0 million of its $1 par common shares to executives, subject to forfeiture if employment is terminated within two years. The common
FX Services granted 17.0 million of its $1 par common shares to executives, subject to forfeiture if employment is terminated within two years. The common shares have a market price of $9 per share on the grant date. Ignoring taxes, what is the effect on earnings in the year after the shares are granted to executives? (Round your answer to 1 decimal place.)
Multiple Choice
-
$ 76.5 million.
-
$ 17.0 million.
-
$ 0 million.
-
$ 153.0 million.
-
On January 1, 2018, M Company granted 94,000 stock options to certain executives. The options are exercisable no sooner than December 31, 2020, and expire on January 1, 2024. Each option can be exercised to acquire one share of $1 par common stock for $13. An option-pricing model estimates the fair value of the options to be $5 on the date of grant. What amount should M recognize as compensation expense for 2018? (Round your answer to the nearest dollar amount.)
Multiple Choice
-
$62,666
-
$31,333
-
$188,000
-
$156,667
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started