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How much compensation will be recorded

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Question - On Jan. 1, 2020, Cloud Inc. issues stock options for 100,000 shares to a regional manager. The options have an estimated fair value of $6 each. The provide additional incentive for the manager's achievement, the options are not exercisable unless the region revenue increase by 8% in three years. Because the manager when to Ravenclaw College, Cloud initially estimates that the incompetent manager will not achieve the goal. Surprisingly, in year three, the manager meets the 8% increase. How much compensation will be recorded in 2022?

Reference no: EM133168652

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