On January 1, 2021, Oliver Foods issued stock options for 47,000 shares to a division manager. The options have an estimated fair value of $7 each. To provide additional incentive for managerial achievement, the options are not exercisable unless Oliver Foods' stock price increases by 6% in four years. Oliver Foods initially estimates that it is not probable the goal will be achieved. How much compensation will be recorded in each of the next four years

Answers

Answer 1

Answer:

$82,250

Explanation:

the compensation per year = 47,000 x 1/4 x$7 per stock = $82,250

The compensation must be allocated proportionally to every year included in the plan, regardless of the conditions specified by the plan. The stock price already implicitly includes the most probable market conditions for the company, so that is the price that has to be used to record the compensation plan.


Related Questions

Item1 1 points eBookAskReferencesItem 1 TB MC Qu. 06-91 The following information... The following information is taken from Reagan Company's December 31 balance sheet: Cash and cash equivalents $ 8,419 Accounts receivable 70,422 Merchandise inventories 60,362 Prepaid expenses 4,100 Accounts payable $ 14,950 Notes payable 86,638 Other current liabilities 9,500 If net sales for the current year were $612,000, the firm's days' sales uncollected for the year is: (Use 365 days a year.)

Answers

Answer: 42 days

Explanation:

To solve the above question, first, we will have to calculate the debtors turnover ratio which is the date sales uncollected for the year. This will be:

= Sales/Average Accounts Receivables

= $612,000 / $70,422

= 8.69 times

Since we are using 365 days for a year, then the firm's days sales uncollected for the year will be calculated as:

= 365 / 8.69

= 42 days

Nick and Beth run a catering business in which they have two major tasks: getting new clients and preparing food for events and parties. It takes Nick 8 hours to prepare food for an event and 4 hours of effort to get each new client. For Beth, it takes 12 hours to prepare food for an event and 3 hours to get a new client.
1. Who has an absolute advantage in food preparation?
2. Who has a comparative advantage in food preparation?
Suppose that initially, Nick and Beth are both splitting both tasks for a large number of events. Then they decide to start shifting some work according to the principle of comparative advantage. In particular, the person with the comparative advantage in food preparation will take over preparing food for one more event, and the other person will use the freed-up time to get more clients. As a result, the total number of events for which food is prepared will remain unchanged, but the number of new clients will increase by __?__.
The second part threw me off and I got confused. I put up the entire problem just to see if i answered it correctly or not to see whether that was what threw me off or not. Thanks in advance! :)

Answers

Answer:

NICK

NICK

2

Explanation:

A company has absolute advantage in the production of a good or service if it produces more quantity of a good when compared to other countries

Nick prepares food in 8 hours while Beth produces the food in 12 hours. ick thus has an absolute advantage in food preparation because he produces food in less time

A country has comparative advantage in production if it produces at a lower opportunity cost when compared to other countries.

Opportunity cost of Nick in food preparation = 4/8 = 0.5 hours

Opportunity cost of Beth in food preparation = 3 / 12 = 0.25 hours

Nick has a comparative advantage in food preparation

1.Production runs can be scheduled in
A. only one shift
B. always two shifts
C. one or two shifts
D. up to three shifts
2.Hiring the Needed Complement will always eliminate
A. Overtime
B. worker layoffs
C. a Second Shift
D. strikes
3.Management should strive to
A. increase Turnover
B. decrease Turnover
4.Increasing Capacity tends to
A. reduce the Needed Complement
B. reduce the number of workers on Second Shift
C. reduce Overtime
5.Increasing Training Hours tends to
A. increase the Needed Complement
B. decrease the Needed Complement
C. neither increase nor decrease the Needed Complement
D. both increase and decrease the Needed Complement
6.Recruiting Costs are incurred when
A. Automation levels increase
B. Production runs increase and teams match hiring to Needed Complement
C. workers are assigned to a Second Shift
7.Assuming the Productivity Index is greater than 100%, adding Overtime will
A. increase the Productivity Index
B. decrease the Productivity Index
8.Worker training is entered by the
A. Hour
B. Dollar
9.Teams can eliminate all Recruiting Costs if they wish
A. True
B. False
10.Generally, Separation Costs will be incurred when
A. Production levels increase
B. Automation Levels increase
C. Production Levels decrease
D. Production levels decrease and / or Automation levels increase

Answers

Answer:

Explanation:

10)production levels decrease and/or automation levels increase

Consider the following transactions for Huskies Insurance Company:
a. Equipment costing $42,000 is purchased at the beginning of the year for cash. Depreciation on the equipment is $7,000 per year.
b. On June 30, the company lends its chief financial officer $50,000; principal and interest at 7% are due in one year.
c. On October 1, the company receives $16,000 from a customer for a one-year property insurance policy. Deferred Revenue is credited.
For each item, record the necessary adjusting entry for Huskies Insurance at its year-end of December 31. No adjusting entries were made during the year.

Answers

Answer:

31-Dec

Dr Depreciation expense $7,000

Cr Accumulated Depreciation - Equipment $7,000

31-Dec

Dr Interest receivable $1,750

Cr Interest revenue $1,750

31-Dec

Dr Deferred Revenue $4,000

Cr Revenue or Service Revenue $4,000

Explanation:

Preparation of the necessary adjusting entry for Huskies Insurance at its year-end of December 31.

31-Dec

Dr Depreciation expense $7,000

Cr Accumulated Depreciation - Equipment $7,000

(Being to adjust 12 month depreciation)

31-Dec

Dr Interest receivable ($50,000 x 7% x 6/12) $1,750

Cr Interest revenue $1,750

(Being to adjust 6 month interest revenue accrued)

31-Dec

Dr Deferred Revenue ($16,000 x 3/12) $4,000

Cr Revenue or Service Revenue $4,000

(Being to record earned revenue for 3 months)

Shale Remodeling uses time and materials pricing. It is setting prices for next year using the following information: Labor rate, including fringe benefits$75per hourAnnual labor hours 6,350hoursAnnual materials purchase$1,206,250 Materials purchasing, handling, and storage$241,250 Overhead for depreciation, taxes, insurance, etc.$670,000 Target profit margin for both labor and materials 25% What should Shale set as the materials markup per dollar of materials used

Answers

Answer:

45%

Explanation:

Annual material purchase                                         $1,206,250

Material purchasing, handling and storage cart      $241,250

Material purchasing, handling and storage % on          20%

material purchase ($241,250/$1,206,250*10)

Target profit margin                                                         25%

Material markup per dollar of material used              45%

A household consists of a married couple and their two-year-old daughter. The couple's daughter had no income and lived with her parents all of last year. How many exemptions can the couple claim on last year's tax return if they file with the "Married filing jointly" status?​

Answers

Answer:

3 is the answer

Which examples demonstrate common Law Enforcement Services workplaces and employers? Check all that apply.

Otto is a self-employed worker who provides legal advice to people accused of crimes.
Peng monitors people who are swimming at a beach.
Candie oversees legal proceedings in a courtroom to make sure laws are followed properly.
Zoraida works for the municipal government investigating crime scene evidence in a laboratory.
Colleen inspects travelers and baggage in an airport.
Asa sits in an office filling out paperwork to document crimes.

Answers

Answer:

Zoraida works for the municipal government investigating crime scene evidence in a laboratory.

Colleen inspects travelers and baggage in an airport.

Asa sits in an office filling out paperwork to document crimes.

Explanation:

Criminal justice and law enforcement provide challenging but rewarding career paths. The examples of common law enforcement Services workplaces and employers are options 3,4, and 6.

What are some examples of common law enforcement services?

Local legal institutions include police departments and sheriffs. State agencies include state or highway patrol. Government agencies include the FBI and the U.S. Secret Service.

Local, regional, and individual levels of government provide different types of public office.

Hence, the examples of common Law Enforcement Services are

Option 3. Candie oversees legal proceedings in a courtroom to make sure laws are followed properly.Option 4. Zoraida works for the municipal government investigating crime scene evidence in a laboratory.Option 6. Asa sits in an office filling out paperwork to document crimes.

To learn more about common law enforcement services. refer to the link:

https://brainly.com/question/25967537

An alumnus of West Virginia University wishes to start an endowment that will provide scholarship money of $40,000 per year beginning in year 5 and continuing indefinitely. The donor plans to give money now and for each of the next 2 years. If the size of each donation is exactly the same, the amount that must be donated each year at i = 8% per year is closest to:___.
a) $190.820.
b) $122.280.
c) $127.460.
d) $132.040.

Answers

Answer:

A

Explanation:

Present value of a  perpetuality = amount / interest rate

= $40,000 / 0.08 = $500,000

Let D denote denote denotions

[tex]D + \frac{D}{1 + 0.8} + \frac{D}{1.08^{2} } = $500,000[/tex]

D = $190.820.

A company has fixed costs of $96,800. Its contribution margin ratio is 44% and the product sells for $61 per unit.
What is the company's break-even point in dollar sales?

Answers

$220,000

Explanation:

Calculation for the company's break-even point in dollar sales

Using this formula

Break-Even point in dollars sales= Fixed Costs ÷ Contribution Margin

Let plug in the formula

Break-Even point in dollars sales=$96,800/44%

Break-Even point in dollars sales=$220,000

Therefore the company's break-even point in dollar sales will be $220,000.

The company recorded $5,000 sales with 60% contribution margin ratio in 2019. According to the sales manager, the company can increase the sales volume by 30% this year if the company spends $400 as advertisement expense and decreases the selling price by 10%, while unit variable cost remains the same. If CEO approves the plan, how does it affect the net operating income in 2020

Answers

Answer:

$150 Decrease

Explanation:

                  Income Statement

                                      Present    Proposed

Sales                              $5,000    $5,350 [(5000+30%)-10%]

Variable 10%                  $2,000    $2,000 (2000*130%)

Contribution Margin      $3,000    $3,250

Fixed cost                           -          $400  

Net Operating Income $3,000    $2,850

Effect on Net Operating Income = $2,850 - $3,000 = -$150

Quickbooks Online. IRS guidelines require specific information to substantiate deductible automobile expenses. Which 3 items are included in the substantiation requirements?

Answers

Answer:

✓Vehicle type

✓date placed in service

✓total mileage (including business, commuting and personal)

Explanation:

IRS guidelines available for automobile

deductible is that if one is using his cat for business purposes, the entire cost of ownership as well as operation can be deducted. But if the car is for business and personal purposes, the cost for the business use can be deducted.

The three items that are are included in the substantiation requirements are;

✓Vehicle type

✓date placed in service

✓total mileage (including business, commuting and personal)

Item9 Time Remaining 34 minutes 55 seconds00:34:55 Item 9 Time Remaining 34 minutes 55 seconds00:34:55 Babuca Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product. Production volume 13,900 units 15,000 units Direct materials $ 813,150 $ 877,500 Direct labor $ 215,450 $ 232,500 Manufacturing overhead $ 1,011,500 $ 1,024,150 The best estimate of the total variable manufacturing cost per unit is: (Round your intermediate calculations to 2 decimal places.) Multiple Choice

Answers

Answer:

$85.50

Explanation:

Particulars              Amount       Amount     Difference

Direct materials      $813,150      $877,500     $74,350

Direct labor             $215,450     $232,500     $17,050

Manufacturing OH  $1,011,500   $1,024,150    $12,650

T.V. Overheads       2040100     2134150        $94,050

Production Volume   13,900         15,000         1,100      

Variable Cost per unit                                      $85.50

On January 1, 2015, Lake Co. purchased a machine for $1,056,000 and calculated depreciation using the straight-line method, with an estimated useful life of eight years, and no salvage value. On January 1, 2018, Lake determined that the machine had a useful life of six years from the date of acquisition, and a salvage value of $96,000. An accounting change was made in 2018 to reflect these data. The accumulated depreciation for this machine should have a balance at December 31, 2018, of ________. Group of answer choices

Answers

Answer:

$584,000

Explanation:

The computation of the accumulated depreciation is shown below:

But before that following calculations need to be determined

Depreciation for 3 years = $1,056,000 ÷ 8 years × 3 years

= $396,000

Now the written down value is

= $1,056,000 - $396,000 - $96,000

= $564,000

For one year it would be

= $564,000 ÷ 3

= $188,000

Now the accumulated depreciation is

= $396,000 + $188,000

= $584,000

​Inflation, nominal interest​ rates, and real rates. From 1991 to​ 2000, the U.S. economy had an annual inflation rate of around ​%. The historical annual nominal​ risk-free rate for this same period was around ​%. Using the approximate nominal interest rate equation and the true nominal interest rate​ equation, compute the real interest rate for that decade. What is the estimated real interest rate using the approximate nominal interest rate equation for that​ decade?

Answers

Answer:

the question is incomplete:

nominal interest rate = 5.07%

real interest rate = ?

inflation rate = 3.45%

approximate real interest rate = 5.07% - 3.45% = 1.62%

real interest rate = [(1 + 5.07%) / (1 + 3.45%)] - 1

real interest rate = (1.0507/1.0345) - 1 = 1.57%

You borrow $6,230 to buy a car. The terms of the loan call for monthly payments for 5 years a rate of interest of 6 percent. What is the amount of each payment?a. $115.26b. $88.74c. $113.78d. $120.44e. $89.29

Answers

Answer:

orrow $6230 to buy a car. The terms of the loan call for monthly payments for 5 years a rate of interes… ... of interest of 6 percent.

Explanation:

Other Questions
James recently got a credit card. The APR on the card is 19.8%. What is the monthly interest rate?A. 1.65%B. 7.8%C. 12%D. 19.8% When a gas is heated, the gas particles have more kinetic energy. Complete the following sentence: This means they move about more and have more ______ with the sides of the container. This increases the pressure. Find the domain and range for f(x)=pi cos(x) please urgent please help need help with the blue I'm in need of help will give brilliance Read these excerpts from News Articles about Bullying.Text 1:This week, Jaylen and Mihok will be going into 10 local schools, doing their part to put a stop to bullying."Our presentations are like a pep rally," Robin Arnold said.Text 2:Earlier this month, Jaylen partnered with the Polk County, Florida, school board and local law-enforcement officials to launch a weeklong, countywide anti-bullying initiative . . ."We give out books, wristbands and certificates to the kids and posters and teachers guides to the school, said Robin Arnold.Which detail in Text 1 do you better understand because of details in Text 2?which ten schools Jaylen will visithow Mihok contributes to the presentationswhat Robin Arnold says to the studentswhat Jaylens presentations are like Help plsssssssssss I write it 100 time no one answer Is Y=-3/4x -2 Y=3/4x+1 One solution many solution or no solution Which expression is equivalent to the expression below?2(6k+4)4(2+2k1)-------------------------------------------------------------------------a} 18+48kb} 14k1c} 4k4d} 4+4k 12. Removing an organism from an ecosystem will have which of the following affects? Select all that apply. A. Increase in biodiversity B. Decrease in biodiversity C. Increase in the overall health of the ecosystem D. Decrease in the overall health of the ecosystem What is a meme, What does it mean, and when was it created I WILL GIVE BRAINLEIST! Virginia and Kentucky Resolutions: How did Republicans such as Jefferson and Madison react to the Alien and Sedition Acts? (Use the following terms in your response: resolutions, nullify, States Doctrine.) A hundred miles of landscape spread before me like a fan This is an example of: Simile or Metaphor ? , ...'' ? '' what does the incident involving the Conger eel in paragraph 31 ,42 reveal about Jim Tom's and Jimmy Tom's different point of view regarding the reef (From a story called the reef form commlit) is the above cell a plant cell or animal cell? provide two observable Jane and 3 friends decided to split the cost of a pizza evenly. The total cost was $25.48. How much does each friend have to pay? Please help ASAP!Thank you (1)place a teabag in your favorite cup. Pour hot water into the cup andslowly stir the mixture. (2)wait for 3 to 5 minutes for the tea to set in without stirringor squeezing the teabag. (3)remove the teabag, pour in enough amount of milk,and (4)add a dash of sugar syrup and blend until smooth. (5)add fewpieces of ice. (6)is you can decide if you want a creamy milk tea by addingflavorings. (7)tapioca, matcha, dark chocolate, crushed cookies, cheese, and alot more. (8)drink your homemade milk tea and share it with your friends. (9)clean up as you go. How does the average speed of the atoms in a substance compare to the average speed of the atoms in a substance with a lower temperature?