Good Boss Inc The Compensation Expense Would Be A)I
B)II
C)III
D)IV
E)none of the Answers Are Correct

question 27

Multiple Choice

Good Boss Inc.had the following pattern of results related to stock appreciation rights. $\begin{array}{llcc} \text {Shares in the plan } &20,000 \\ \text {Option price } &\$15.00\\ \text { Market price- } &\\ \text { end year 1 } &\$20.00\\ \text { end year 2 } &\$18.00\\ \text {end year 3 } &\$22.00\\\end{array}$

The compensation expense would be:
$\begin{array}{llcc} &\underline{\text { Year1} } &\underline{\text { Year2} }& \underline{\text { Year3 }} \\ \text { I. } &\$100,000&\$-0-&\$40,000\\ \text {II. } &100,000&60,000&40,000\\ \text {III. } &100,000&(40,000) &80,000\\ \text { IV. } &400,000&-0-&40,000\\\end{array}$

• A)I
• B)II
• C)III
• D)IV
• E)none of the answers are correct

---

Definitions:

Control Limits

The boundaries in process control that define the acceptable range for a process or system's performance to stay within statistical control.

Sample Statistics

Quantitative data calculated from a subset of a population, such as the mean or variance.

Control Limits

Statistical boundaries in process control that indicate the maximum and minimum values expected for a stable process performance.

Data Analysis

The process of inspecting, cleaning, transforming, and modeling data with the objective of discovering useful information, informing conclusions, and supporting decision-making.