On October 1, 2024, Halsey Company issued stock options for 490,000 shares to a division manager. The optic provide an cost; Flay Foods issued stock options for 45,000 shares to a division manager. The options have an estimated fair value of $8 each. each. To provide additional incentive for managerial achievement, the options are not exerci ager. The options have an estimated fair value of $3 provide additional incentive for managerial achievement, the options are not exercisable unless Flay Foods' stock price increases by 4% in four years s are not exercisable unless divisional revenue increases by 5% in three years. Halsey initially estimates that it is probable the goal will be achieved. How much compensation will be recorded ing Flay Foods initially estimates that it is not probable the goal will be achieved. How much compensation will be recorded in each of the next four year recorded in each of the next three years? Multiple Choice Multiple Choice so $22,500 $163,333 $90,900 $1,470,000 $90,000 $490,00 Cheng/Hamm Incorporated developed a business strategy that uses stock options as a major compensation incentive for its top executives. On January 1, 2024, 20 million options were granted, each giving the executive own On January 1, 2024, J. Golden Corporation granted an employee an option to purchase 6,000 shares of J. Golden's $5 par common stock at $20 per market price on the grant date - $30 per share ($150 per option). Options vest on January 1, 2028. They cannot be exercised before that date and will to options became exercisable on December 31 expire on December 31, 2030. The fair value of the 20 million options, estimated by an appropriate option pricing model, is $40 per option. Ignore January 10, 2026 . The market prices of J. Golden's stock were as follows: January 1, 20 ws: janlovee completed two years of service. The option was exercised on income tax. option pricing model estimated the value of the options at $8 each on the grant date. For 2024, ). come $30; December 31, 2025, $50; and January 10, 2026, $45. An . For 2024, J. Golden should recognize compensation expense of: Cheng/Hamm's compensation expense in 2024 for these stock options was Multiple Choice Multiple Choice $24,000. $800 million. O $200 million. O $60,000. $400 million. $30,000. O 20 million options were groped business strategy that uses stock options as a major compensation incentive for its top executives. On January 1, 2024, Under its executive stock option plan, Muehlmann Corporation granted options on January 1, 2024, that permit executives to purchase 27.0 million of the price on the grant date-$10 per share. Options vest on January 1 2029 mamma non shares. The exercise price company's $1 par common shares within the next eight years, but not before December 31, 2026 (the vesting date). The exercise price is the market price 10 per share. Options vest on January 1, 2028. They cannot be exercised before that date and will expire on December 31, 2030. The fair value of the 20 million options, estimated by an appropriate option pricing model, is $40 per option. Ignore income tax. forfeitures were anticipated grant: $20 per share. The fair value of the options, estimate e of the options, estimated by an appropriate option pricing model, is $4 per option. No Muehlmann charge to compensation expense for the year ended December 31, 2026? goused the forfeiture of 5% of the stock options. What amount should Assume that all compensation expense from the stock options granted by Huang already has been recorded. Further assume that 200,000 options expire in 2029 without being exercised. The journal entry to re Note: Round your answer to 1 decimal place . this would include: Multiple Choice Multiple Choice O a debit to paid-in capital-stock options for $8 million. O $34.2 million O a debit to common stock for $5 million $32.5 million a debit to paid-in capital-expiration of stock options for $8 million. $36.0 million O None of these answer choices are correct . $32.4 million