Exhibit 15-7 on January 1, 2013, 70 Executives Were Granted

Exhibit 15-7 On January 1, 2013, 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 2013 is (to the nearest dollar)

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

Correct Answer:

Verified

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

Access For Free