Examlex

Solved

Green Company Is a Calendar-Year U

question 178

Multiple Choice

Green Company is a calendar-year U.S.firm with operations in several countries.At January 1,2016,the company had issued 40,000 executive stock options permitting executives to buy 40,000 shares of stock for $25.The vesting schedule is 20% the first year,30% the second year,and 50% the third year (graded-vesting) .The fair value of the options is estimated as follows: Green Company is a calendar-year U.S.firm with operations in several countries.At January 1,2016,the company had issued 40,000 executive stock options permitting executives to buy 40,000 shares of stock for $25.The vesting schedule is 20% the first year,30% the second year,and 50% the third year (graded-vesting) .The fair value of the options is estimated as follows:   Assuming Green uses the straight-line method,what is the compensation expense related to the options to be recorded in 2017? A) $130,667. B) $200,000. C) $333,333. D) $400,000.
Assuming Green uses the straight-line method,what is the compensation expense related to the options to be recorded in 2017?


Definitions:

Well-adjusted

Describes a person who is mentally and emotionally stable and able to cope effectively with the demands of daily life.

Similar

Having a likeness or resemblance, often in terms of appearance, nature, or qualities, to something else.

Work

The exertion of effort towards achieving a result, whether through employment, tasks, or engaging in a particular activity.

Counterproductive Strategies

Behaviors or methods that hinder rather than help achieve a desired outcome or goal.

Related Questions