Under its executive stock option plan, National Corporation granted 30 million options on January 1, 2024, that permit executives to purchase 30 million of the company's $1 par common shares within the next six years, but not beforeDecember 31, 2026 (the vesting date). The exercise price is the market price of the shares on the date of grant, $33 per share. The fair value of the options, estimated by an appropriate option pricing model, is $5 per option. Suppose thatunexpected turnover during 2025 caused the forfeiture of 5% of the stock options. Compute the amount of compensation expense for 2025 and 2026. Note: Enter your answers in millions rounded to 2 decimal places (i.e., 5, 500,000 should beentered as 5.50)

A stock option plan is a compensation strategy that grants employees the right to purchase company…

Answered: unexpected turnover during 2025 caused…

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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On 1 January 2019, Azzurri Berhad sold a stock item with a cost of RM50,000 to Mancini Berhad. The terms of the sale include a five-yearly instalment of RM15,000, each payable at the end of every year. The cash selling price of the stock is RM60,000. An effective interest rate of 7.931% should be used in any calculations With reference to relevant Malaysian Financial Reporting Standards (MFRS), prepare the respective journal entries for the years ended 31 December 2019 and 31 December 2020
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Cash Supplies Prepaid Insurance Equipment Accumulated Depreciation-Equipment Trademarks Accounts Payable Salaries and Wages Payable Unearned Service Revenue Bonds Payable (due 2032) Common Stock Retained Earnings Service Revenue Salaries and Wages Expense Insurance Expense Rent Expense Debit ? 1,310 1,110 48,110 1,060 9,110 1,510 1,310 Credit $ 4,110 10,110 610 2,110 9,110 10,110 25,110 10,110

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unexpected turnover during 2025 caused the forfeiture of 5% of the stock options. Compute the amount of compensation expense for 2025 and 2026. Note: Enter your answers millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50)