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On January 1, Year 1, Fields Corporation granted 200,000 stock options to certain executives. The vesting period is 3 years. The options are exercisable no sooner than December 31, Year 3 and expire on January 1, Year 7. 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 $11 on the date of grant. Fields chooses to adjust the fair value of the options for the estimated forfeitures. If unexpected turnover in Year 2 caused Fields to estimate that 12% of the options would be forfeited, what amount of compensation expense should Fields recognize in Year 2? (Round intermediate calculations and your final answer to the nearest dollar.)
Diagnosing Personality Disorders
The process of identifying and classifying patterns of behavior and thought that deviate significantly from societal expectations and cause dysfunction or distress.
Independent Perspective
An outlook or viewpoint that is free from the influence or control of others, often leading to unique or unconventional ideas.
Personality Trait
Enduring patterns of thoughts, feelings, and behaviors that differentiate individuals from one another.
Complex Pattern
A configuration or sequence of elements that are connected in a complicated way.
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