American optical corporation provides a variety of share-based compensation plans to its employees. under its executive stock option plan, the company granted options on january 1, 2018, that permit executives to acquire 5 million of the company’s $1 par common shares within the next five years, but not before december 31, 2019 (the vesting date). the exercise price is the market price of the shares on the date of grant, $73.00 per share. the fair value of the 5 million options, estimated by an appropriate option pricing model, is $18 per option. no forfeitures are anticipated. ignore taxes.

required:

1. determine the total compensation cost pertaining to the options.

2. to 4. prepare the appropriate journal entries.

Which critical success factor improves with reduced cycle time, better quality standards, and improved efficiency when an is is implemented?

Jennifer purchased a house in a brand new development in the outskirts of town. when her house was built, the nearest fire department was nearly 20 miles away. as her neighborhood developed, the density of the community called for a new fire department 1.5 miles away. what effect will the new fire station have on her homeowners insurance premium? a. a new fire department will be more demanding on local taxes. her annual premium will go up. b. the location of a fire department has no bearing on the value of her house. her annual premium will stay the same. c. the new fire department will reduce the risk of financial loss in her home. her annual premium should decrease. d. with a fire department so close (less than 5 miles), financial risk on jennifer’s home practically disappears. she will not need to pay insurance anymore.

James albemarle created a trust fund at the beginning of 2016. the income from this fund will go to his son edward. when edward reaches the age of 25, the principal of the fund will be conveyed to united charities of cleveland. mr. albemarle specified that 75 percent of trustee fees are to be paid from principal. terry jones, cpa, is the trustee. james albemarle transferred cash of $500,000, stocks worth $400,000, and rental property valued at $250,000 to the trustee of this fund. immediately invested cash of $360,000 in bonds issued by the u. s. government. commissions of $7,900 are paid on this transaction. incurred permanent repairs of $9,000 so that the property can be rented. payment is made immediately. received dividends of $8,000. of this amount, $3,000 had been declared prior to the creation of the trust fund. paid insurance expense of $4,000 on the rental property. received rental income of $10,000. paid $8,000 from the trust for trustee services rendered. conveyed cash of $7,000 to edward albemarle.