Teague Corporation Permits Any of Its Employees to Buy Shares

question 130

Multiple Choice

Teague Corporation permits any of its employees to buy shares directly from the company through payroll deduction. There are no brokerage fees and shares can be purchased at a 10% discount. During July, employees purchased 33,000 shares at a time when the established market price was $26 per share. Teague will record compensation expense associated with July purchases of ________.

• A) $0
• B) $85,800
• C) $772,200
• D) $858,000

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