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:

Advertisements

Notices, visuals, or audio messages intended to promote or sell a product, service, or idea through various media channels.

Purchasing Power Parity

An economic theory that compares different countries' currencies through a "basket of goods" approach, aiming to measure the relative value of different currencies.

Globalization

Refers to the processes by which goods, services, capital, people, information, and ideas flow across national borders.

Big Mac Index

An informal measure of purchasing power parity between two currencies, comparing the price of a Big Mac in different countries.