To Encourage Employee Ownership of the Company's Common Shares, KL

question 91

Multiple Choice

To encourage employee ownership of the company's common shares, KL Corp. permits any of its employees to buy shares directly from the company through payroll deduction. There are no brokerage fees and shares can be purchased at a 15% discount. During May, employees purchased 10,000 shares at a time when the market price of the shares on the New York Stock Exchange was $15 per share. KL will record compensation expense associated with the May purchases of:

• A) $0.
• B) $15,000.
• C) $22,500.
• D) $150,000.

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Definitions:

Predation

The ecological process by which one organism hunts and consumes another organism for sustenance.

Precautionary Principle

A safety principle requiring that an action or policy having the potential to cause harm to the public or to the environment should not be undertaken if the consequences are uncertain or potentially dangerous.

Environmental Protection

Efforts and policies aimed at conserving the natural environment and preventing further degradation due to human activity.

Sharks

A group of elasmobranch fish characterized by a cartilaginous skeleton, five to seven gill slits on the sides of the head, and pectoral fins that are not fused to the head.