Answer is $60 million. Please explain the reasoning and calculations million options are expected to vest. On January 2, 2019, all 12 million vested options areexercised when the stock price is $60. The applicable tax rate for all periods is 30%. Thecompany has sufficient taxable income for the stock option tax deductions to reduce incometaxes payable in all periods.10. By what amount will Telespace's shareholder's equity be increased in year 2017?a. $60 millionb. $18 millionc. $12 milliond. $0Answer: A*15-180 million Questions 20 to 23 are based on the following information:On January 1, 2016, Telespace Inc. grants 12 million stock options to its employees. Thestock options have exercise price of $20, which is equal to the grant-date price. All optionswill vest in three years. The grant date fair value of the options is $15 per option. All 12

The stockholder’s equity represents the net worth. it also represents the amount that is returned to…

Questions 20 to 23 are based on the following information: On January 1, 2016, Telespace Inc. grants 12 million stock options to its employees. The stock options have exercise price of $20, which is equal to the grant-date price. All options will vest in three years. The grant date fair value of the options is $15 per option. All 12

Questions 20 to 23 are based on the following information: On January 1, 2016, Telespace Inc. grants 12 million stock options to its employees. The stock options have exercise price of $20, which is equal to the grant-date price. All options will vest in three years. The grant date fair value of the options is $15 per option. All 12

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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