What is the amount of compensation expense year

Assignment Help Accounting Basics
Reference no: EM132282233

Question - On January 1, year 1, Axis Corporation granted employees 76,500 stock options for 76,500 shares of $3 par value common stock. The exercise price of the data of issue was equal to the market price of $23. There's a two year vesting period and the options expires in 4 years. Employees have the right to sell back the shares to the Corp within 6 months of exercise. The fair value of the options has been estimated to be $31 per option and the company doesn't expect any forfeiture of the options. What is the amount of compensation expense year 1?

a. 2,371,500

b. 0

c. 1,185,750

d. 1,759,500

Reference no: EM132282233

Questions Cloud

How important are the social sciences to your understanding : Have you changed your own mind about the social sciences' value to your understanding of these challenges over the term of this course? If so, how?
Discussion about the asymmetrical balance : Find online an image of an artwork that uses asymmetrical balance, and copy it onto a blank Microsoft document. On the Microsoft document.
Prepare the bank reconciliation at September : At September 30, deposits in transit were $4,920, and outstanding checks totaled $2,853. Prepare the bank reconciliation at September 30
Identify gross anatomical structures : Identify gross anatomical structures using the Anatomy Revealed Dissection Tool in your LR and then write an explanation of the normal operation.
What is the amount of compensation expense year : The exercise price of the data of issue was equal to the market price of $23. What is the amount of compensation expense year 1
What you learned from your exploration : In order to expand your awareness of the range of jobs that are available in the early childhood/child development field, this Discussion requires you.
Explain how applying the methods of analyzing an argument : Explain how applying the methods of analyzing an argument can help you make and win your point.
What are some of the challenges of your job : The video segments you viewed covered only some of the jobs available in the field of early childhood and child development. Many other jobs were referred.
How would you explain the concept to your incoming freshman : Imagine that you are a new college professor developing your first lecture on the Capital Asset Pricing Model.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Management expects cash to increase by 20000 accounts

a corporation is considering expanding operations to meet growing demand. with the capital expansion the current

  Determine the issuance price of the bonds

Waterhouse Company plans to issue bonds with a face value of $506,000 and a coupon rate of 10 percent. Determine the issuance price of the bonds

  What internal control internal control weakness led to case

What internal control internal control weakness led to this case of fraud. How the situation wasre solved or should have been resolved.

  What amount of interest income

Granger entered into an installment sales contract which required annual payments of $150,000, including interest at 10%, over five years. The first payment was due on December 31, 2007. What amount of interest income should be included in Wagner'..

  Prepare the issuance journal entry

Prepare the issuance journal entry and the first annual payment using straight-line. All bonds were dated January 1, 2015 and pay annually - Prepare the journal entry to issue

  what is the most they should invest on January

Marigold Corp. makes an investment today (January 1, 2017). If Marigold wants to earn 9% on the investment, what is the most they should invest on January

  Since you do not plan to be in the store during all the

since you do not plan to be in the store during all the hours it is open what specific decision-making authority would

  Prepare general journal entries to record the share issue

Prepare the general journal entries to record the share issue and the purchase of the land and building on January 1 and the amortization expense on December

  Problem on stock warrants - proportional method

Problem on Stock Warrants - Proportional Method. The Denver Broncos issued 2,000 $1,000 bonds at 102. Each bond was issued with one detachable stock warrant.

  How many units should the company produce in a month

Lie Around Furniture manufactures two products: To maximize profits, what product and how many units should the company produce in a month

  What are the markup percentages for total variable costs

If management desires a 11 percent rate of return on total assets, what are the markup percentages for total variable costs

  What is the lowest acceptable transfer price

According to the formula in the text, what is the lowest acceptable transfer price from the viewpoint of the selling division

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