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• FX Services granted 17.0 million of its $1 par common shares to executives, subject to forfeiture if employment is terminated within two years. The common shares have a market price of $8 per share on the grant date. Ignoring taxes, what is the effect on earnings in the year after the shares are granted to executives? (Round your answer to 1 decimal place.)

$ 0 million.

$ 17.0 million.

$ 136.0 million.

$ 68.0 million.

Bottom of Form

• On January 1, 2016, M Company granted 93,000 stock options to certain executives. The options are exercisable no sooner than December 31, 2018, and expire on January 1, 2022. Each option can be exercised to acquire one share of $1 par common stock for $13. An option-pricing model estimates the fair value of the options to be $4 on the date of grant.

What amount should M recognize as compensation expense for 2016? (Round your answer to the nearest dollar amount.)

$62,000

$31,000

$155,000

$124,000

• On January 1, 2016, M Company granted 94,000 stock options to certain executives. The options are exercisable no sooner than December 31, 2018, and expire on January 1, 2022. Each option can be exercised to acquire one share of $1 par common stock for $10. An option-pricing model estimates the fair value of the options to be $3 on the date of grant.

If unexpected turnover in 2017 caused the company to estimate that 10% of the options would be forfeited, what amount should M recognize as compensation expense for 2017? (Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.)

$31,333

$94,000

$47,000

$75,200

• Under its executive stock option plan, N Corporation granted options on January 1, 2016, that permit executives to purchase 10.0 million of the company's $1 par common shares within the next eight years, but not before December 31, 2018 (the vesting date). The exercise price is the market price of the shares on the date of grant, $17 per share. The fair value of the options, estimated by an appropriate option pricing model, is $5 per option. No forfeitures are anticipated. Ignoring taxes, what is the effect on earnings in the year after the options are granted to executives? (Round your answer to 1 decimal place.)

$75.0 million.

$16.7 million.

$ 0 million.

$50.0 million.

• On January 1, 2016, Oliver Foods issued stock options for 43,000 shares to a division manager. The options have an estimated fair value of $4 each. To provide additional incentive for managerial achievement, the options are not exercisable unless Oliver Foods' stock price increases by 3% in four years. Oliver 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 years?

$14,333.

No effect.

$43,000.

$43,100.

• On January 1, 2016, D Corp. granted an employee an option to purchase 5,500 shares of D's $3 par common stock at $20 per share. The options became exercisable on December 31, 2017, after the employee completed two years of service. The option was exercised on January 10, 2018. The market prices of D's stock were as follows: January 1, 2016, $35; December 31, 2017, $55; and January 10, 2018, $43. An option pricing model estimated the value of the options at $8 each on the grant date. For 2016, D should recognize compensation expense of:

$22,000.

$ 0.

$16,500.

$96,250.

Pastore Inc. granted options for 1 million shares of its $1 par common stock at the beginning of the current year. The exercise price is $34 per share, which was also the market value of the stock on the grant date. The fair value of the options was estimated at $6.00 per option.

What would be the total compensation indicated by these options?

$6.0 million.

$28.0 million.

$34.0 million.

$62.0 million.

On January 1, 2016, Albacore Company had 270,000 shares of its common stock issued and outstanding. Albacore issued a 12% stock dividend on July 1, 2016. On October 1, 2016, Albacore retired 11,000 of its common shares. When calculating basic earnings per share for 2016, what is the appropriate number of shares for Albacore to use in the denominator of the EPS fraction?

282,320.

299,650.

302,400.

305,150.

On December 31, 2015, the Bennett Company had 105,000 shares of common stock issued and outstanding. On July 1, 2016, the company sold 21,000 additional shares for cash. Bennett's net income for the year ended December 31, 2016, was $580,000. During 2016, Bennett declared and paid $79,000 in cash dividends on its nonconvertible preferred stock. What is the 2016 basic earnings per share? (Round your answer to 2 decimal places.)

$5.02.

$4.77.

$4.34.

None of these answer choices is correct.

Dulce Corporation had 200,000 shares of common stock outstanding during the current year. There were also fully vested options for 12,000 shares of common stock were granted with an exercise price of $20. The market price of the common stock averaged $25 for the year. Net income was $4.8 million. What is diluted EPS? (Round your answer to 2 decimal places.)$24.00.$22.64.$23.72.$25.53.Bottom of Form

1. FX Services granted 17.0 million of its $1 par common shares to executives, subject to forfeiture if employment is terminated within two years. The common shares have a market price of $8 per share on the grant date. Ignoring taxes, what is the effect on earnings in the year after the shares are granted to executives? (Round your answer to 1 decimal place.) $ 0 million. $ 17.0 million. $ 136.0 million. $ 68.0 million. 2. On January 1, 2016, M Company granted 93,000 stock options to certain executives. The options are exercisable no sooner than December 31, 2018, and expire on January 1, 2022. Each option can be exercised to acquire one share of $1 par common stock for $13. An option-pricing model estimates the fair value of the options to be $4 on the date of grant. What amount should M recognize as compensation expense for 2016? (Round your answer to the nearest dollar amount.) $62,000 $31,000 $155,000 $124,000 3. On January 1, 2016, M Company granted 94,000 stock options to certain executives. The options are exercisable no sooner than December 31, 2018, and expire on January 1, 2022. Each option can be exercised to acquire one share of $1 par common stock for $10. An option-pricing model estimates the fair value of the options to be $3 on the date of grant. If unexpected turnover in 2017 caused the company to estimate that 10% of the options would be forfeited, what amount should M recognize as compensation expense for 2017? (Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.) $31,333 $94,000 $47,000 $75,200 4. Under its executive stock option plan, N Corporation granted options on January 1, 2016, that permit executives to purchase 10.0 million of the company's $1 par common shares within the next eight years, but not before December 31, 2018 (the vesting date). The exercise price is the market price of the shares on the date of grant, $17 per share. The fair value of the options, estimated by an appropriate option pricing model, is $5 per option. No forfeitures are anticipated. Ignoring taxes, what is the effect on earnings in the year after the options are granted to executives? (Round your answer to 1 decimal place.) $75.0 million. $16.7 million. $ 0 million. $50.0 million. 5. On January 1, 2016, Oliver Foods issued stock options for 43,000 shares to a division manager. The options have an estimated fair value of $4 each. To provide additional incentive for managerial achievement, the options are not exercisable unless Oliver Foods' stock price increases by 3% in four years. Oliver 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 years? $14,333. No effect. $43,000. $43,100. 6. On January 1, 2016, D Corp. granted an employee an option to purchase 5,500 shares of D's $3 par common stock at $20 per share. The options became exercisable on December 31, 2017, after the employee completed two years of service. The option was exercised on January 10, 2018. The market prices of D's stock were as follows: January 1, 2016, $35; December 31, 2017, $55; and January 10, 2018, $43. An option pricing model estimated the value of the options at $8 each on the grant date. For 2016, D should recognize compensation expense of: $22,000. $ 0. $16,500. $96,250. 7. Pastore Inc. granted options for 1 million shares of its $1 par common stock at the beginning of the current year. The exercise price is $34 per share, which was also the market value of the stock on the grant date. The fair value of the options was estimated at $6.00 per option. What would be the total compensation indicated by these options? $6.0 million. $28.0 million. $34.0 million. $62.0 million. 8. On January 1, 2016, Albacore Company had 270,000 shares of its common stock issued and outstanding. Albacore issued a 12% stock dividend on July 1, 2016. On October 1, 2016, Albacore retired 11,000 of its common shares. When calculating basic earnings per share for 2016, what is the appropriate number of shares for Albacore to use in the denominator of the EPS fraction? 282,320. 299,650. 302,400. 305,150. 9. On December 31, 2015, the Bennett Company had 105,000 shares of common stock issued and outstanding. On July 1, 2016, the company sold 21,000 additional shares for cash. Bennett's net income for the year ended December 31, 2016, was $580,000. During 2016, Bennett declared and paid $79,000 in cash dividends on its nonconvertible preferred stock. What is the 2016 basic earnings per share? (Round your answer to 2 decimal places.) $5.02. $4.77. $4.34. None of these answer choices is correct. 10. Dulce Corporation had 200,000 shares of common stock outstanding during the current year. There were also fully vested options for 12,000 shares of common stock were granted with an exercise price of $20. The market price of the common stock averaged $25 for the year. Net income was $4.8 million. What is diluted EPS? (Round your answer to 2 decimal places.) 11. 12. $24.00. 13. $22.64. 14. $23.72. 15. $25.53. 17