Questions 4 and 5 Questions On January 1, 2019, a compensation plan with a stock...
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Questions 4 and 5 Questions On January 1, 2019, a compensation plan with a stock option plan was created for senior management (top executives) in which it is stipulated that they can receive the right to purchase up to 18,000 common shares to $ 40 per share. The par value of the stock is $ 10. On February 1, 2019, the options were granted to the executives. Options are non-transferable and must continue as employees in order to exercise the option. The options expire on February 1, 2023. The company assumes that the services that these executives will offer will be performed in the same proportion for the years 2019 and 2020. It is estimated that the fair value of the options granted to these executives is $ 1,900,000. 4. On February 1, 2019, a share compensation expense will be recognized in the amount of: a. $0 b. $ 180,000 c. $ 720,000 d. $ 1,900,000 5. Assuming that all executives remained working in the company, the compensation expense in shares for the year 2020 will be: a. $0 b. $ 90,000 c. $ 360,000 d. $ 950,000
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