An option-pricing model estimates the fair value of the, Ask an Expert

Accounting

On January 1, 2011, M Company granted 98,000 stock options to certain executives. The options are exercisable no sooner than December 31, 2013 and expire on January 1, 2017. Each option can be exercised to acquire one share of $1 par common stock for $11. An option-pricing model estimates the fair value of the options to be $5 on the date of grant. If unexpected turnover in 2012 caused the company to estimate that 15% of the options would be forfeited, what amount should M recognize as compensation expense for 2012? (Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.)

View complete question

Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M959680

Have any Question?Write your Review or question?

Related Questions in Accounting Basics

Question - the following list of accounts appear in

Question - The following list of accounts appear in alphabetical order and were taken from ABC Corporation's ledger as of December 31, 2018. The Accounts Payable records were missing. Accounts Payable $? Inventory $7,000 ...

Question sam and sue are married and age 65 sam has a full

Question: Sam and Sue are married and age 65. Sam has a full time job that pays $80,000 and Sue's full time job pays $85,000. They have worked since age 16 and are planning on keeping their jobs and signing up for social ...

Question you are the instructor of a one-day tax seminar to

Question: You are the instructor of a one-day tax seminar to inform international students studying business in the United States about the current tax system. You are preparing a background report to help you prepare fo ...

Question what is meant by the term tax morality if for

Question: What is meant by the term "tax morality"? If for example, your company has a subsidiary in Russia where some believe tax evasion is a fine art, should you comply with Russian tax laws or violate the laws as do ...

Question - a company incurred the following transactions

Question - A company incurred the following transactions: 1. Wages of $2,650 accrued at the end of the prior fiscal period were paid this fiscal period. 2. Real estate taxes of $7,100 applicable to the current period hav ...

Question write an improvement plan in a 1050- to 1400-word

Question: Write an improvement plan in a 1,050- to 1,400-word document. You are a Supply Chain Manager of a building supply company. Your company sells building materials to building contractors, home improvement constru ...

Question - pharoah company purchased equipment for 11160 on

Question - Pharoah Company purchased equipment for $11160 on January 1, 2017. The company expects to use the equipment for 3 years. It has no salvage value. Calculate the Monthly depreciation expense on the asset?

Question - the annual report can be downloaded from the

Question - The Annual Report can be downloaded from the website for Fletcher Building annual-report. Refer to Note-4 on page 65 of the Annual Report 2017, identify what are the "significant items" in 2017 and discuss the ...

Assignmentplease read the following economist article that

Assignment Please read the following economist article that is attached at the end of this instruction paper: "The Future of Jobs The onrushing wave Previous technological innovation has always delivered more long-run em ...

Question - topcap co is evaluating the purchase of another

Question - TopCap Co. is evaluating the purchase of another sewing machine that will be used to manufacture sport caps. The invoice price of the machine is $152,000. In addition, delivery and installation costs will tota ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Accounting Basics Expert