Question
On January 1, 2024, Farmer Fabrication issued stock options for 200,000 shares to a division manager. The options have an estimated fair value of $6
On January 1, 2024, Farmer Fabrication issued stock options for 200,000 shares to a division manager. The options have an estimated fair value of $6 each. To provide additional incentive for managerial achievement, the options are not exercisable unless divisional revenue increases by 2% in three years. Farmer initially estimates that it is probable the goal will be achieved.
How much compensation will be recorded in 2024, 2025, 2026?
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Integrated Audit Practice Case
Authors: David S. Kerr, Randal J. Elder, Alvin A. Arens
7th Edition
0912503688, 978-0912503684
