On January 1, Year 1, Gallagher Corporation issued 400 comma 000 stock options for 400 comma 000 shares to a division manager. The options have an estimated fair value of $ 10 each. These options are not exercisable unless division revenue increases by 8% in four years. Gallagher estimates that it is probable that the goal will be achieved. What is pretax compensation expense for year 1?g
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Ответ:
$1,000,000
Explanation:
Gallagher Corporation
Stock option × Option estimated fair value /Numbers of years
Stock option $400,000
Option estimated fair value $10
Numbers of years 4
Hence:
($400,000 × $10) / 4 years
=$4,000,000/4years
= $1,000,000
Therefore pretax compensation expense for year 1 will be $1,000,000
Ответ:
WWhat descriptions?
Explanation: