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MichaelJoult MichaelJoult
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6 years ago
Schmidt Electronics offered an incentive stock plan to its employees. On January 1, Year 1, options were granted for 110,000 $1 par common shares. The exercise price equals the $6 market price of the common stock on the grant date. The options cannot be exercised before January 1, Year 4, and expire on December 31, Year 5. Each option has a value of $4 based upon an option pricing model.

What is the amount debited to Deferred Compensation?
A) $110,000
B) $330,000
C) $440,000
D) $660,000
Textbook 
Intermediate Accounting

Intermediate Accounting


Edition: 1st
Authors:
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Replies
wrote...
6 years ago
 C
Explanation:  110,000  $4 = $440,000
MichaelJoult Author
wrote...
6 years ago
Genius!!!!!!
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