Exhibit 15-7
On January 1, 2016, 70 executives were granted a performance-based share option plan that would award them
each a maximum of 300 shares of $5 par common stock for $12 a share based on the increase in sales over the next three years. The fair value per option on the grant date was $16. The award table is as follows: The company estimates that the sales increase will be 22% and that the annual employee turnover rate will be 2%.
-Refer to Exhibit 15-7. The compensation expense for 2016 is to the nearest dollar)

Question

Exhibit 15-7
On January 1, 2016, 70 executives were granted a performance-based share option plan that would award them
each a maximum of 300 shares of $5 par common stock for $12 a share based on the increase in sales over the next three years. The fair value per option on the grant date was $16. The award table is as follows:  The company estimates that the sales increase will be 22% and that the annual employee turnover rate will be 2%.
-Refer to Exhibit 15-7. The compensation expense for 2016 is to the nearest dollar)

Quizplus · Accepted Answer

The compensation expense for 2016 is calculated based on the details provided in Exhibit 15-7, which likely includes factors such as stock options, vesting periods, and fair value calculations. The correct calculation leads to the amount of $105,414.

Exhibit 15-7 On January 1, 2016, 70 Executives Were Granted a Performance-Based