What amount should g charge to compensation expense

Assignment Help Accounting Basics
Reference no: EM131774139

Question - On January 1, 2009, G Corp. granted stock options to key employees for the purchase of 80,000 shares of the company's common stock at $25 per share. The options are intended to compensate employees for the next two years. The options are exercisable within a four-year period beginning January 1, 2011, by the grantees still in the employ of the company. No options were terminated during 2009, but the company does have an experience of 4% forfeitures over the life of the stock options. The market price of the common stock was $31 per share at the date of the grant. G Corp. used the Binomial pricing model and estimated the fair value of each of the options at $10. What amount should G charge to compensation expense for the year ended December 31, 2009?

A. $307,200.

B. $320,000.

C. $384,000.

D. $400,000.

Reference no: EM131774139

Questions Cloud

Compute the total unemployment taxes : Peyton Company payroll for the year is $737,910 of this amount, compute the Total unemployment Taxes
Capability to the business continuity team : Develop a program to add capability to the business continuity team. What basic components of this plan would you emphasize?
Draw the production possibilities frontier for each country : Suppose Russia and Sweden each produce only paper and cars. Russia can produce 8 tons of paper or 4 million cars each year.
Explain reasons why business professionals must understand : Explain reasons why business professionals must understand how MIS supports decision making and problem solving?
What amount should g charge to compensation expense : What amount should G charge to compensation expense for the year ended December 31, 2009?
What is the total tax revenue : Suppose that the tax (Ti) paid by individual i is the following function of his or her income (Xi): Ti = 0.1(Xi - 2000) = 0.1Xi - 200.
What happened to the real gdp per person : Suppose that twenty-five years ago a country had nominal GDP of $1,800, a GDP deflator of 150, and a population of 100.
At what amounts should each of the three assets be recorded : The estimated fair values of the assets are land $66,000, At what amounts should each of the three assets be recorded
Effects of tax breaks on level of charitable contribution : You are interested in estimating the effects of tax breaks on the level of charitable contribution.

Reviews

Write a Review

Accounting Basics Questions & Answers

  In davis corporations most recent fiscal year the company

in davis corporations most recent fiscal year the company reported pretax earnings of 215000.fixed costs totaled 325800

  What is a database discuss the types of database systems -

what is a database? discuss the types of database systems - hierarchical network relational object oriented etc. out of

  Demonstrates ethical scholarship in accurate representation

demonstrates ethical scholarship in accurate representation

  Calculate the overhead cost for each instruction center

Tri City Collage is organized into three instruction centers and two service centers.calculate the overhead cost for each instruction center.

  What is the budgeted cost of unused capacity

Unused capacity, activity-based costing, activity-based management. Archer Pro manufactures two models of sport bows, Basic and Deluxe, using a combination.

  Report foreign currency on consolidated balance sheet

A Clarke Corporation subsidiary buys marketable equity securities and inventory on April 1, 2009, for 100,000 pesos each. It pays for both items on June 1, 2009

  Calculate lings reported operating profit amp actual cash

ling construction entered into a contract in 1997 to build atunnel at a contract price of 11 million. the company

  The firm uses the perpetual inventory system and there are

the following units of a particular item were available for sale during the yearbeginning inventory - 100 units at

  Whizbang corporation discovered that hazardous waste

whizbang corporation discovered that hazardous waste material was buried on property it now owns by the previous owner.

  What types of non-current assets are carried on the balance

1. what types of non-current assets are carried on the balance sheet?2. what is the companys percentage of non-current

  Describe how the acquisition affects number

Describe how the acquisition affects Number Crunching's balance sheet.

  On august 1 2003 cooper company purchased a four-year

on august 1 2003 cooper company purchased a four-year business insurance policy for 13200. calculate the amount of

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd