On January 1, 2013, G Corp. granted stock options to key employees for the purchase of 85,000 shares of the company's common stock at $20 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, 2015, by the grantees still in the employ of the company. No options were terminated during 2013, 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 $26 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 $10. What amount should G charge to compensation expense for the year ended December 31, 2013?

$425,000.

$399,500.

$850,000.

$799,000.

Sneed Corporation reported balances in the following accounts for the current year:

	Beginning	Ending
Income tax payable	$56	$36
Deferred tax liability	79	148

Income tax expense was $238 for the year. What was the amount paid for taxes?

$294.

$258.

$189.

$202.

On January 1, 2013, M Company granted 98,000 stock options to certain executives. The options are exercisable no sooner than December 31, 2015, and expire on January 1, 2019. Each option can be exercised to acquire one share of $1 par common stock for $12. An option-pricing model estimates the fair value of the options to be $4 on the date of grant.

What amount should M recognize as compensation expense for 2013? (Round your answer to the nearest dollar amount.)

$32,667

$163,334

$65,334

$130,667

C Co. reported a retained earnings balance of $210,000 at December 31, 2012. In September 2013, C determined that insurance premiums of $63,000 for the three-year period beginning January 1, 2012, had been paid and fully expensed in 2012. C has a 40% income tax rate. What amount should C report as adjusted beginning retained earnings in its 2013 statement of retained earnings?

$252,000

$247,800

$235,200

$231,000

Boxer Company owned 17,000 shares of King Company that were purchased in 2011 for $350,000. On May 1, 2013, Boxer declared a property dividend of 1 share of King for every 10 shares of Boxer stock. On that date, there were 40,000 shares of Boxer stock outstanding. The market value of the King stock was $24 per share on the date of declaration and $36 per share on the date of distribution. By how much is retained earnings reduced by the property dividend?

	$144,200.
	$0.
	$99,000.
	$96,000.