answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
kvasek [131]
2 years ago
7

On January 1, Year 1, Abbott Company granted 92,000 stock options to certain executives. The options are exercisable no sooner t

han December 31, Year 3, and expire on January 1, Year 7. Each option can be exercised to acquire one share of $1 par common stock for $14. An option-pricing model estimates the fair value of the options to be $5 on the date of grant. What is the amount of compensation expense for Year 1?
Business
1 answer:
Lilit [14]2 years ago
3 0

Answer:

The amount of Compensation expense to Year 1 is $153,333.

Explanation:

Stock options granted                                       92000

X Fair value on date of grant                          5

Total compensation expense                       460000

Years                                                                    3    

Compensation expense per year 1                       53333

Therefore, The amount of Compensation expense to Year 1 is $153,333.

You might be interested in
Fortified Fiber Corporation (FFC) has a manufacturing process that produces three products that together incur joint costs. FFC'
BlackZzzverrR [31]

Answer:

d.Any new costs incurred in FFC's production process after the split-off point can be traced to one of the three final products.

Explanation:

the following statements regarding the new costs incurred in the FFC production process after the split-off point : any new costs incurred in FFC's production process after the split-off point can be traced to one of the three final products.

Costs before the split-off point will have to be allocated as joint costs but those costs incurred in the production process after the split-off point are directly traceable to the final products.

8 0
1 year ago
Read 2 more answers
Demers Inc. reported the following data:
elena-s [515]

Answer:

Cash Flows from Operating Activities  is 555.050

Explanation:

The indirect method involves the adjustment of net income with changes in balance sheet accounts to arrive at the amount of cash generated by operating activities.

It depends on the account if it is added or subtracted to net income. Below you will find the added account with a plus (+) and the subtracted ones with a minus (-)

Notice the amounts of any decreases are in parentheses.

Net income 490.000

Adjustment to reconcile the net income to cash  

+ Depreciation expense 52.000

- Gain on disposal of equipment (7.000)

+ Decrease in accounts receivable  32.400

- Decrease in accounts payable (12.350)

Net cash 555.050

7 0
1 year ago
Codes of conduct (ethics) are formalized rules and standards that describe what the company expects of its employees in terms of
Ludmilka [50]

Answer:

True

Explanation:

The codes of conduct are the set or collection of conduct in an organisation that are specified for the particular organisation. These conducts may be following:

  • Rules
  • Principles
  • Values
  • Employee expectations, behavior, and relationships

These codes of conducts are to be followed by the individuals associated with organisation.

4 0
2 years ago
Orlando Builders Inc. issued a bond with a par value of $1,000, a coupon rate of 9.00% (semiannual coupon), and a yield to matur
Rudik [331]

Answer:

Price of bond = $1,365.54

Explanation:

<em>The value of the bond is the present value (PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV).  </em>

Value of Bond = PV of interest + PV of RV  

The value of bond for Orlando Builders Inc.  can be worked out as follows:  

Step 1  

PV of interest payments  

Semi annul interest payment  

= 9% × 1000 × 1/2 = 45  

Semi-annual yield = 5.80%/2 = 2.9 % per six months  

Total period to maturity (in months)  

= (2 × 19) = 38  periods  

PV of interest =  

45 × (1- (1+0.029)^(-21)/0.029)= 1028.087

Step 2  

PV of Redemption Value  

= 1000 × (1.029)^(-19×2) =337.45

Price of bond  

= 1028.08 + 337.45 =1365.54

Price of bond = $1,365.54

7 0
2 years ago
1. Advertising is important for most companies, es- pecially companies such as P&amp;G that sells mostly to end customers. But,
omeli [17]

Answer:

1. Companies like P&G have their customer base consisting on end customers whose choice of toothpaste and towels which can change depending on multiple influencers like cost, other attractive features in competitors, freebies etc. Thus a strong customer focus and reach is essential to even retain the current customer base. Thus these companies need to focus on advertising to remain competitive in the current market atmosphere.

2. The numbers of advertising companies can be appropriately engaged based on cost and effectiveness as long as there are sufficient companies customizing the advertising and marketing efforts for the region in focus. If there are too many agencies running the advertising, the cost could be very high. If the number of agencies are decreased to too low and same advertising efforts are used in different type of demographic regions, the impact and effectiveness of the advertising could be less and not as effective as required. Thus choosing the sufficient number of agencies to reach all the required demographic regions is essential to balance the cost and effectiveness of advertising.

3. Innovation will always be rewarded in the current market atmosphere. If we look at the current market position of P&G, seeing that the they are currently placed in a good position with good presence in multiple products for different customer segments. Thus after studying the market and weighing all the aspects, it could make sense for P&G to consolidate and cut the less profitable businesses.

5 0
2 years ago
Read 2 more answers
Other questions:
  • Freedman Flowers' stock has a 50% chance of producing a 25% return, a 30% chance of producing a 10% return, and a 20% chance of
    11·1 answer
  • The term skunk works refers​ to ________.
    14·1 answer
  • Why would an advocate of the efficient market hypothesis believe that even if many investorsexhibit the behavioral biases discus
    9·1 answer
  • Northern purchased the entire business of Southern including all its assets and liabilities for $2,400,000 on December 31, 2021.
    11·1 answer
  • Lenci Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and
    13·1 answer
  • Marko, Inc., is considering the purchase of ABC Co. Marko believes that ABC Co. can generate cash flows of $4,800, $9,800, and $
    12·1 answer
  • A decline in the domestic real interest rate would cause a ________ in net exports and a ________ in the exchange rate.
    8·1 answer
  • The business pays $2,000 in cash to the landlord for office space rent. a) Expenses reduce by $2,000 b) Equity remains unchanged
    11·1 answer
  • AP Macro Topic 1.3 Comparative Advantage and Trade Part 1 - Mastering Skills- Answer the following questions to verify that you
    13·1 answer
  • Stew Beauf is a self-employed surfboard-maker in 2019. His Schedule C net income is $152,800 for the year. He also has a part-ti
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!