On December 31, 2015, in Order to Retain Certain Key

question 10

Multiple Choice

On December 31, 2015, in order to retain certain key executives, Entebbe Corporation granted them stock options.25,000 options were granted at an option price of $40 per share.Market prices of the shares were as follows: The options were granted as compensation for services to be rendered over a two-year period beginning January 1, 2016.The Black-Scholes option pricing model determined total compensation expense to be $500,000.The amount of compensation expense Entebbe should have recorded for calendar 2017 is

• A)$250,000.
• B)$500,000.
• C)$875,000.
• D)$1,000,000.

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Definitions:

Three Branch

In electrical circuits, a term referring to a system or schematic that divides into three distinct paths or branches.

Total Resistance

The cumulative resistance faced by current in a circuit, calculated by summing individual resistances in series and applying parallel resistance formulas when appropriate.

27 Ω

A specific resistance value, indicating an object or material has a resistance of twenty-seven ohms.

56 Ω

A specific value of electrical resistance indicating that an object opposes the flow of electric current with a force of 56 ohms.