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:
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.

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Definitions:

Miracle Question

A therapeutic intervention used to help clients envision how their life would change if a miracle happened and their presenting problems were solved overnight.

Envision

The act of imagining or foreseeing something in the future, particularly regarding one's goals or plans.

Successfully Delivered

Refers to the effective implementation and completion of a service, program, or intervention.

Coping Questions

Inquiries made to understand how individuals deal with stress, challenges, and adversity, often used to assess and bolster coping strategies in therapy.