On January 1, 2020, Orion Corp

question 5

Multiple Choice

On January 1, 2020, Orion Corp. granted an employee an option to purchase 5,000 of Orion's no par value common shares at $ 50 per share. The Black-Scholes option pricing model determined total compensation expense to be $ 220,000. The option became exercisable on December 31, 2021, after the employee completed two years of service. The market prices of Orion's shares were as follows: For calendar 2021, Orion should recognize compensation expense of

• A) $ 0.
• B) $ 50,000.
• C) $ 110,000.
• D) $ 250,000.

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Definitions:

Pairwise Population Means

Comparisons made between the means of all possible pairs in a set of population groups to find differences.

Completely Randomized Design

This design is a basic type of experimental design where subjects are randomly allocated to various treatments, ensuring unbiased results.

Experimental Units

The smallest division of experimental material to which a treatment is independently applied in a study or experiment.

Treatment

An intervention or condition that experimenters apply to subjects or experimental units in a study to observe its effect.