If unexpected turnover in Year 2 caused Fields to estimate that 15% of the options would be forfeited,what amount of compensation expense should Fields recognize in Year 2?

Name: If unexpected turnover in Year 2 caused Fields to estimate that 15% of the options would be forfeited,what amount of compensation expense should Fields recognize in Year 2?
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Quizplus · Accepted Answer

15% of the options would be forfeited, so the compensation expense should be 15% of the $2 million grant, which is $300,000.

If Unexpected Turnover in Year 2 Caused Fields to Estimate