Exhibit 16-7 on January 1, 2010, 70 Executives Were Granted $\begin{array}{ll}\text { Increase in Sales } & \text { No. of Share } \\10 \% & 100 \\15 \% & 200 \\20 \% & 300\end{array}$

Exhibit 16-7 On January 1, 2010, 70 executives were granted a performance-based stock option plan that would award them each a maximum of 300 shares of $5 par common stock for $12 a share based on the increase in sales over the next three years.The fair value per option on the grant date was $16.The award table is as follows:
$\begin{array}{ll}\text { Increase in Sales } & \text { No. of Share } \\10 \% & 100 \\15 \% & 200 \\20 \% & 300\end{array}$
The company estimates that the sales increase will be 22% and that the annual employee turnover rate will be 2%.
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Refer to Exhibit 16-7.The compensation expense for 2011 is (to the nearest dollar)

A) $ 82, 320
B) $105, 414
C) $109, 760
D) $210, 828

Correct Answer:

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