What Is the Total Compensation Cost for This Plan

question 106

Multiple Choice

What is the total compensation cost for this plan?

• A)$0.
• B)$60,000.
• C)$240,000.
• D)$300,000.60,000 $1 = $60,000

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Definitions:

Consolidated Net Income

The total earnings of a parent company and its subsidiaries, after taxes and interest, reported as a single figure.

Noncontrolling Interest

Noncontrolling interest is the portion of equity interest in a subsidiary not held by the parent company, reflecting the equity ownership of minority shareholders.

Dividends

Distributions of earnings from a corporation to its shareholders, typically in the form of profit sharing.

Noncontrolling Interest

A minority stake in a company that is not large enough to exercise control over the company, often reflected in the financial statements of a parent company that owns more than 50% but less than 100% of a subsidiary.