On January 2, 2014, Sanders Corporation granted stock options to key employees for the purchase of 60,000 shares of the company's common stock at $25 per share. The options are intended to compensate employees for the next two years. The options are exercisable within a four-year period beginning January 1 . 2016, by grantees still in the employ of the company. The fair value of the option
determined by an option pricing model is $7 at the grant date. Sanders plans to distribute up to 60,000 shares of treasury stock when options are exercised. The treasury stock was acquired by Sanders at a cost of $28 per share and was recorded under the cost method. Assume that no stock options were terminated during the year. How much should Sanders charge to Compensation Expense for the year ended December 31 . 2014?
a. $420,000
b. $210,000
c. $180,000
d. $90,000
B
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Answer the following statements true (T) or false (F)
1. When surveyed, most entrepreneurs reported that they started businesses that offered products or services that already existed and that were on par with existing offerings. 2. An elevator pitch should be between 10 and 15 minutes long. 3. Most entrepreneurs tend to overestimate the startup cost and operating expenses of their new business. 4. Equity funding for a new business must eventually be repaid to the investor.
An American employed by a foreign company in a country other than the United States ______ have the protection of U.S. equal employment opportunity laws.
A. would need to B. would C. would not D. able to
The following are exceptions to the Statute of Frauds requirement under the UCC that contracts
for the sale of goods of $500 or more must be in writing except: A) Part acceptance of goods. B) Admissions in pleadings or court. C) Specially manufactured goods. D) A, B, or C. E) A or B only.
For a merchandising company, budgeted purchases equals cost of goods sold plus beginning merchandise inventory minus ending merchandise inventory.
Indicate whether the statement is true or false.