Question: Brief Exercise 19-8 (Algo) Performance-based options (LO19-2] On January 1, 2021, Farmer Fabrication issued stock options for 260,000 shares to a division manager. The options
Brief Exercise 19-8 (Algo) Performance-based options (LO19-2] On January 1, 2021, Farmer Fabrication issued stock options for 260,000 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 divisional revenue increases by 5% in three years. Farmer Initially estimates that it is probable the goal will be achieved How much compensation will be recorded in 2021, 2022 2023? Compensation each year
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
