At december 31 2008 none of the executives had exercised, Ask an Expert

Accounting

On December 31, 2007, Filmore Company granted some of its executives options to purchase 50,000 shares of the company's $10 par common stock at an option price of $50 per share. The options become exercisable on January 1, 2008, and represent compensation for executives' services over a three-year period beginning January 1, 2008. The Black-Scholes option pricing model determines total compensation expense to be $300,000. At December 31, 2008, none of the executives had exercised their options. What is the impact on Filmore's net income for the year ended December 31, 2008 as a result of this transaction under the fair value method?

a. $ 100,000 increase

b. $ 0

c. $ 100,000 decrease

d. $ 300,000 decrease

View complete question

Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M979373

Have any Question?Write your Review or question?

Related Questions in Accounting Basics

Question - finch company began its operations on march 31

Question - Finch Company began its operations on March 31 of the current year. Finch has the following projected costs: April May June Manufacturing costs (1) $157,100 $196,400 $213,800 Insurance expense (2) 810 810 810 ...

Question - crane company had 590000 shares of common stock

Question - Crane Company had 590000 shares of common stock outstanding on January 1, issued 890000 shares on July 1, and had income applicable to common stock of $2930000 for the year ending December 31, 2018. Earnings p ...

Assignment 1 depreciation and nontaxable propertycompanies

Assignment 1: Depreciation and Nontaxable Property Companies buy, use, and sell many types of property as a part of business operations. The amount involved can be substantial as can be the tax implications. Based on you ...

Question - on december 31 year 1 day co leased a new

Question - On December 31, year 1, Day Co. leased a new machine from Parr with the following pertinent information: Lease term 8 years Annual rental payable at beginning of each year $60,000 Useful life of machine 10 yea ...

Question - anwer owns a rental home and is involved in

Question - Anwer owns a rental home and is involved in maintaining it and approving renters. During the year he has a net loss of $8,000 from renting the home. His other sources of income during the year are a salary of ...

Discussion as a present for doing so well in your finance

Discussion: As a present for doing so well in your finance class, your uncle has offered you a choice: He will give you either a zero coupon long term bond or a short term bond that pays coupon payments. Which would you ...

Question - shanklin corporations unadjusted trial balance

Question - Shanklin Corporations unadjusted trial balance as of June 30, 2018 is as shown below: DEBIT Cash 13000, AR 1500, Prepaid Insurance 600, Supplies 3800, Equipment 30000, Dividends 4800, Wages Expense 14000..... ...

Discussion internal controlsbullimagine that a coworker

Discussion: Internal Controls • Imagine that a coworker wants to circumvent an internal control to steal money from your company. Speculate on two (2) internal controls that your coworker might attempt to circumvent in o ...

Question - at december 31 2016 grouper corporation reported

Question - At December 31, 2016, Grouper Corporation reported current assets of $384,870 and current liabilities of $206,100. The following items may have been recorded incorrectly. 1. Goods purchased costing $22,150 wer ...

Question - nutty co gourmet snacks currently sells their

Question - Nutty Co. Gourmet Snacks currently sells their Gourmet Deluxe Gift Basket for 53% each. Nutty Co. currently holds 2B percent of the market share for high-end gift baskets. The marketing manager believes that t ...

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