Weiser Corp. on January 1, 2012, granted stock options for 40,000 shares of its $10 par value common stock to its key employees. The market price of the common stock on that date was $23 per share and the option price was $20. The Black-Scholes option pricing model determines total compensation expense to be $420,000. The options are exercisable beginning January 1, 2015, provided those key employees are still in Weiser's employ at the time the options are exercised. The options expire on January 1, 2016.
On January 1, 2015, when the market price of the stock was $29 per share, all 40,000 options were exercised. The amount of compensation expense Weiser should record for 2015 under the fair value method is
a. $70,000.
b. $210,000.
c. $140,000.
d. $0.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Weiser Corp. on January 1, 2012, granted stock options for 40,000 shares of its $10 par value common stock to its key employees. The market ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Incoterms determine the seller's and buyer's respective obligations concerning responsibilities and charges for the transportation of goods from the seller's premises to the buyer's place. a) trueb) false
Answers (1)
In a market system: Resources are directed and production is coordinated by the government Consumption and production possibilities are restricted by religious authorities Some markets are regulated, while others are unregulated Households and firms
Answers (1)
Karl is a night person, so he's studying for his economics final by working at night, when he's at his best. what are other strategies for effective time management?
Answers (1)
Sharidan Company began the year with retained earnings of $659000. During the year, the company recorded revenues of $600000, expenses of $380000, and paid dividends of $141500.
Answers (1)
may be used when the shipped goods are minerals in short supply, or when the product has been heavily subsidized by the government. b. are collected by many governments in an attempt to control exports. c. protect importers from fraudulent exporters.
Answers (1)
New Questions in Business
Describe two examples of equity investments.
Answers (2)
A company's defined benefit pension plan had a pension benefit obligation (PBO) of $265,000 on 1/1/2018. During 2018, pension benefits paid were $40,000. The discount rate for the plan for this year was 10%. Service cost for 2018 was $80,000.
Answers (1)
If its yield to maturity declined by 1%, which of the following bonds would have the largest percentage increase in value? Group of answer choices A 10-year bond with an 8% coupon. A 10-year zero coupon bond. A 10-year bond with a 12% coupon.
Answers (1)
When someone is considering a career as a lawyer, future earnings are the net cost. net benefit. future cost. future benefit.
Answers (1)
nabors nagamatsu deposited a check for 299.45 and a check for 229.52 he received 42 on cash what was his total deposit
Answers (1)