On January 1, 2021, M Company granted 95,000 stock options to certain executives. The options are exercisable no sooner than December 31, 2023, and expire on January 1, 2027. Each option can be exercised to acquire one share of $1 par common stock for $11. An option-pricing model estimates the fair value of the options to be $4 on the date of grant. If unexpected turnover in 2022 caused the company to estimate that 20% of the options would be forfeited, what amount should M recognize as compensation expense for 2022? (Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.)

Multiple Choice

• $31,667

• $47,500

• $76,000

• $126,667

On October 1, 2021, Iona Bell Co. issued stock options for 300,000 shares to a division manager. The options have an estimated fair value of $3 each. To provide additional incentive for managerial achievement, the options are not exercisable unless divisional revenue increases by 6% in three years. Bell initially estimates that it is not probable the goal will be achieved, but then after one year, Bell estimates that it is probable that divisional revenue will increase by 6% by the end of 2023. Bell will:

Multiple Choice

• record compensation expense of $600,000 in 2022 and $300,000 in 2023.

• record compensation expense of $300,000 in 2022 and $300,000 in 2023.

• record compensation expense of $450,000 in 2022 and $450,000 in 2023.

• record compensation expense of zero in 2022 and in 2023.

Coy, Inc. initially issued 210,000 shares of $1 par stock for $1,050,000 in 2019. In 2020, the company repurchased 21,000 shares for $210,000. In 2021, 10,500 of the repurchased shares were resold for $168,000. In its balance sheet dated December 31, 2021, Coy, Inc.'s treasury stock account shows a balance of: