On January 1, 2013, G Corp

question 110

Multiple Choice

On January 1, 2013, G Corp. granted stock options to key employees for the purchase of 80,000 shares of the company's common stock at $25 per share. The options are intended to compensate employees for the next two years. The options are exercisable within a four-year period beginning January 1, 2015, by the grantees still in the employ of the company. No options were terminated during 2013, but the company does have an experience of 4% forfeitures over the life of the stock options. The market price of the common stock was $31 per share at the date of the grant. G Corp. used the Binomial pricing model and estimated the fair value of each of the options at $10. What amount should G charge to compensation expense for the year ended December 31, 2013?

• A)$307,200.
• B)$320,000.
• C)$384,000.
• D)$400,000.

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Definitions:

1948 Convention

Likely refers to the Universal Declaration of Human Rights adopted by the United Nations in 1948.

Civil Rights Plan

Strategies and policies designed to eliminate discrimination and ensure equal rights for all citizens, particularly in contexts of racial and social injustice.

Federal Civil Rights Commission

An independent, bipartisan agency established by the U.S. government responsible for investigating, reporting on, and making recommendations concerning civil rights issues in the United States.

Jackie Robinson

Broke the color barrier in Major League Baseball in 1947, becoming the first African American to play in MLB in the modern era.