Exhibit 15-7 On January 1, 2013, 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. In 2014 the actual sales increase was determined to be 18%, and the overall turnover rate was exactly 2%. The compensation expense for 2014 is (to the nearest dollar)

Question

Exhibit 15-7 On January 1, 2013, 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. In 2014 the actual sales increase was determined to be 18%, and the overall turnover rate was exactly 2%. The compensation expense for 2014 is (to the nearest dollar)

Quizplus · Accepted Answer

The Answer of Exhibit 15-7 On January 1, 2013, 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. In 2014 the actual sales increase was determined to be 18%, and the overall turnover rate was exactly 2%. The compensation expense for 2014 is (to the nearest dollar)

Exhibit 15-7 on January 1, 2013, 70 Executives Were Granted