What Amount Will Woolsey Include as an Option Expense in Net

question 2

Multiple Choice

What amount will Woolsey include as an option expense in net income for the period July 24 to October 24?

• A) $ 4,000.
• B) $ 5,000.
• C) $10,000.
• D) $12,000.
• E) $14,000.

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Definitions:

Fair Value

The amount one would get from selling an asset or would need to spend to settle a liability in a well-organized sale involving market players on the date of evaluation.

Tax Rate

The fraction of earnings on which the government imposes taxes for individuals or corporations.

Consolidation Worksheet Entry

An accounting entry used in the preparation of consolidated financial statements which adjusts for intercompany transactions and balances.

Treasury Stock

Shares of a company's own stock that it has repurchased from investors but not yet retired.