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pls i need help 5) On January 1, 2025, Richmond Company granted Chris Mullin, an employee, an option 5) to bay 2,000 shares of Richrnond
pls i need help 5) On January 1, 2025, Richmond Company granted Chris Mullin, an employee, an option 5) to bay 2,000 shares of Richrnond Co. stock for $30 per share, with the option exercisable for 5 years from the date of grant. Using a fair value option pricing model. total compensation expense is determined to be $18,000. Mullie exereised his option on October 1, 2025 and sold his 2,000 shares on Decernber 1, 2025. The service period is three years, beginning January 1, 2025. As a result of the option granted to Mullin, using the fair value method, Richmond should recognize compensation expense for 2025 in the amount of A) $6,000. B) $12,000. C) $18,000. D) $2,000 6) During 2023 and 2024 , the only change in Sprewell Corp's common shares outstanding resulted from a 2 -for-1 stock split on April 1, 2024. When calculating earnings per share for 2023 and 2024 to be presented on Sprewell's 2024 comparative income statement, 2024 's denominator will be 2023 's denominator. A) the same as B) greater than C) less than D) Impossible to determine from information given. 7) In computing diluted earnings per share, the treasury stock method is used for options and warrants to reflect the assumed reacquisition of common stock at the average market price during the period. If the exercise price of the options or warrants exceeds the average market price, the computation would A) be antidilutive. B) fairly present the maximum potential dilution of diluted eamings per share on a prospective basis. C) reflect the excess of the number of shares assumed issued over the number of shares assumed reacquired as the potential dilution of earnings per share. D) fairly present diluted earnings per share on a prospective basis. 8) Antidilutive securities A) should be included in the computation for diluted earnings per share but not for basic earnings per share. B) should be ignored in all earnings per share calculations. C) include stock options and warrants whose exercise price is less than the average market price of common stock. D) are those whose inclusion in earnings per share computations would cause basic earnings per share to exceed diluted earnings per share
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