Block Corporation Permits Key Employees to Buy Shares Directly from the Company

question 131

Multiple Choice

Block Corporation permits key 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 36,000 shares at a time when the established market price was $31 per share. Block will record salary expense associated with July purchases of ________.

• A) $0
• B) $111,600
• C) $1,004,400
• D) $1,116,000

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