On january 1, 2018, red inc. issued stock options for 280,000 shares to a division manager. the options have an estimated fair value of $5 each. to provide additional incentive for managerial achievement, the options are not exercisable unless divisional revenue increases by 6% in three years. red initially estimates that it is probable the goal will be achieved. ignoring taxes, what is compensation expense for 2018? (round your answer to the nearest dollar amount.)

$466,667

Explanation:

Compensation expenses for 2018 should be computed as follows:

Fair value of each option = $5

Number of stock options issued = 280,000

Therefore,

Total compensation expense = $5 x 280,000

                                                 = $1,400,000

And,

Number of years for which the compensation expense would be recognized = 3

Thus,

Compensation expense for 2018:

= Total compensation expense ÷ Number of years

= $1,400,000 ÷ 3

= $466,667

answer; ///usually the ( irs ) selects returns that are the most likely have errors,based on complex criteria;

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi