If Unexpected Turnover in 2010 Caused the Company to Estimate

question 14

Multiple Choice

If unexpected turnover in 2010 caused the company to estimate that 10% of the options would be forfeited, what amount should M recognize as compensation expense for 2010?

• A)$ 30,000
• B)$ 60,000
• C)$120,000
• D)$150,000 (90,000 5 = $450,000; $450,000 90% = $405,000 2/3 = $270,000; $270,000 150,000 = $120,000)

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