Multiple Choice
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. In 2017, the company determined that the actual annual average increase was 16%. The compensation expense for 2017 will be
A) $123,750
B) $247,500
C) $82,500
D) $55,000
Correct Answer:
Verified
Correct Answer:
Verified
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