Answered step by step
Verified Expert Solution
Question
1 Approved Answer
On January 1, 2020, Company A issued stock options for 828 shares to a executive. The options have an estimated fair value of $9 each.
On January 1, 2020, Company A issued stock options for 828 shares to a executive. The options have an estimated fair value of $9 each. To provide additional incentive for managerial achievement, the options are not exercisable unless Company A's stock price increases by 5% in six years. Company A initially estimates that it is not probably the goal will be achieved.
How much compensation will be recorded in 2020?
Group of answer choices
$2,484
No compensation should be recorded because it is not probable the goal will be achieved.
$7,452
$1,242
20
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