On december 31, 2014, gonzalez company granted some of its executives options to purchase 150,000 shares of the company’s $10 par common stock at an option price of $50 per share. the black-scholes option pricing model determines total compensation expense to be $1,125,000. the options become exercisable on january 1, 2015, and represent compensation for executives’ services over a three-year period beginning january 1, 2015. at december 31, 2015 none of the executives had exercised their options. what is the impact on gonzalez’s net income for the year ended december 31, 2015 as a result of this transaction under the fair value method?

Camilo is a self-employed roofer. he reported a profit of $30,000 on his schedule c. he had other taxable income of $5,000. he paid $3,000 for hospitalization insurance. his self-employment tax was $4,656. he paid his former wife $4,000 in court-ordered alimony and $4,000 in child support. what is the amount camilo can deduct in arriving at adjusted gross income (agi)?

20. to add body to a hearty broth, you may use a. onions. b. pasta. c. cheese. d. water.

Tl & co. is following a related-linked diversification strategy, and soar inc. is following a related-constrained diversification strategy. how do the two firms differ from each other? a. soar inc. generates 70 percent of its revenues from its primary business, while tl & co. generates only 10 percent of its revenues from its primary business. b. soar inc. pursues a backward diversification strategy, while tl & co. pursues a forward diversification strategy. c. tl & co. will share fewer common competencies and resources between its various businesses when compared to soar inc. d. tl & co. pursues a differentiation strategy, and soar inc. pursues a cost-leadership strategy, to gain a competitive advantage.