What Amount Should M Recognize as Compensation Expense for 2016

question 5

Multiple Choice

What amount should M recognize as compensation expense for 2016?

• A)$ 30,000.
• B)$ 60,000.
• C)$120,000.
• D)$150,000.

---

Definitions:

Propeller Shaft

The mechanical component used to transmit power from an engine or motor to the propeller in a boat or aircraft.

Universal Joints

Flexible joints used in drive shafts that allow for the transmission of power between shafts that are not aligned.

Driveshaft Flexibility

The ability of a driveshaft to flex or bend without breaking, to accommodate movement and alignment changes in a vehicle's drivetrain.

Powertrain Components

Parts of a vehicle's system that produce power and deliver it to the road surface, including the engine, transmission, driveshafts, differentials, and final drive.