Exhibit 15-6 On January 1, 2016, 50 Executives Were Given a Performance-Based

Exhibit 15-6
On January 1, 2016, 50 executives were given a performance-based share option plan that would award them with a maximum of 300 shares of $10 par common stock for $20 a share. On the grant date, the fair value of an option was
$16.50. The number of options that will vest depends on the size of the annual average increase in sales over the next three years according to the following table: On the grant date, the company estimates the annual average sales increase will be 14%.
-Refer to Exhibit 15-6. The estimated total compensation cost will be

A) $55,000.
B) $123,750.
C) $27,500.
D) $247,500.

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free