Bells, Inc.'s board authorized 150,000 stock options for the company's design team. The options can only be used to purchase shares of Bells, Inc's common stock for $9 per share and will vest in 3 years. Assuming that the options were authorized on January 1st of 2023, that the fair value of the options is $6, and that the company's tax rate is 20%, what will the amount of the net tax effect of these options in 2023? (NIE 15) $300,000 $120,000 $180,000 $60,000
Bells, Inc.'s board authorized 150,000 stock options for the company's design team. The options can only be used to purchase shares of Bells, Inc's common stock for $9 per share and will vest in 3 years. Assuming that the options were authorized on January 1st of 2023, that the fair value of the options is $6, and that the company's tax rate is 20%, what will the amount of the net tax effect of these options in 2023? (NIE 15) $300,000 $120,000 $180,000 $60,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Bells, Inc.'s board authorized 150,000 stock options for the company's design team. The options can only be used to purchase shares of Bells, Inc's common stock for $9 per share and will vest in 3 years. Assuming that the options were authorized on January 1st of 2023, that the fair value of the options is $6, and that the company's tax rate is 20%, what will the amount of the net tax effect of these options in 2023? (NIE 15)
$300,000
$120,000
$180,000
$60,000
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