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Gross payroll or the employees of Bann ster Enterprises totals $100 000 per week. From this must be thheld Soca secunty taxes of6.20% and Medicare

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Gross payroll or the employees of Bann ster Enterprises totals $100 000 per week. From this must be thheld Soca secunty taxes of6.20% and Medicare taxes of 1.45%. In addition, federal and state income tax withholdings amount to 15% of gross pa Tol Compute the TOTAL employee COMPENSATION EXPENSE for one werk $92,350 $100,000 $107,650 $115,000 $77.350 On lanuary of Year 1, Shay Dee Company established stock option plan for its senior empleyees. A total af, tions were granted that perrmit employees to purchase 60,1Oshares of stock at $4D per share. Each optian had a fair value of $3 on the grant date lhe maket price or sha Dee stock on an ary 1 of Year 1 was S40, e employees are re un to reman ith Shay Dee or our years Years l throug 4 to exercise these options ay Dee's net in on efo ea i before in uding any consideration of compensation expense, is $750,000. Campute the COMPENSATION EXPENSE associated with these options for Year 1 $600,000 $300,000 $187,5o0 $450,000 1,800,00o

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