Michael is an employee of StayHere Hotels, Inc. in Washington, DC. On his vacation, Michael travels to San Francisco and stays at a StayHere Hotel for six nights free of charge. The regular rate for a hotel room at StayHere in San Francisco is $300 a night. His ability to stay in the hotel without charge is based on the availability of empty rooms. How much income must Michael report due to the
use of the San Francisco hotel room?
A) $0
B) $300
C) $360
D) $1,800
A) $0
The hotel rooms are considered a no-additional cost benefit.
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Insurance purchased from a broker is effective when
a. the application is filled out. b. the first premium is paid. c. the company accepts it. d. a binder is issued.
Stoney Brook Company produces two products (X and Y) from a joint process. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Joint manufacturing costs for the year were $60,000. Sales values and costs were as follows: If Processed FurtherProductUnits MadeSales Priceat Split-Off Sales ValueSeparable CostX9,000$40,000 $78,000 $10,500 Y6,000 80,000 90,000 7,500 If the joint production costs are allocated based on the physical-units method, the amount of joint cost assigned to product X would be:
A. $36,000. B. $24,000. C. $20,000. D. $30,000. E. $40,000.
According to Thamhain and Wilemon, _____ is the ability to improve a worker's position
a. penalty b. assignment c. expertise d. promotion
?
Exhibit 15-8 On January 1, 2016, Margarita Company granted share appreciation rights (SARs) to the president, which permitted her to receive cash or stock for the difference between the quoted market price and $50 for 2,000 shares of the company's stock on the exercise date. The service period ends on December 31, 2018, and the rights must be exercised by December 31, 2021. Assume that on December 31, 2019, the president exercises all of her rights and receives cash. Using an options pricing model, the estimated fair values of the SARs were as follows: January 1, 2016 $10 December 31, 2016 15 December 31, 2017 20 December 31, 2018 19 December 31, 2019 23 Refer to Exhibit 15-8. What is the compensation expense related to the SARs for the year ending December 31, 2019? A. $0 B. $8,000 C. $11,500 D. $15,333