On January 1, Year 1, Fields Corporation Granted 500,000 Stock

question 17

Multiple Choice

On January 1, Year 1, Fields Corporation granted 500,000 stock options to certain executives. The options are exercisable no sooner than December 31, Year 3 and expire on January 1, Year 7. The vesting period is 3 years. Each option can be exercised to acquire one share of $10 par common stock for $15. An appropriate option-pricing model estimates the fair value of each option to be $12 on the date of grant. What amount should Fields recognize as compensation expense for Year 1?

• A) $0
• B) $2,000,000
• C) $750,000
• D) $6,000,000

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Definitions:

Skills

Abilities and expertise developed through training or experience that enhance an individual’s capability to perform tasks.

Gender Discrimination

Unjust treatment or considerations based on an individual's gender, often resulting in disadvantage or prejudice.

Employment Inequity

Unequal treatment or disparities in the workplace related to hiring, pay, promotion, and working conditions based on gender, race, or other characteristics.

Gender Gap

The difference in outcomes such as wages, education, and opportunities between genders, highlighting inequalities.