Exhibit 15-7 On January 1, 2016, 70 Executives Were Granted a Performance-Based

Exhibit 15-7
On January 1, 2016, 70 executives were granted a performance-based share 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: The company estimates that the sales increase will be 22% and that the annual employee turnover rate will be 2%.
-Refer to Exhibit 15-7. The compensation expense for 2016 is to the nearest dollar)

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

Correct Answer:

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