On january 1, 2013, m company granted 94,000 stock options to certain executives. the options are exercisable no sooner than december 31, 2015, and expire on january 1, 2019. each option can be exercised to acquire one share of $1 par common stock for $12. an option-pricing model estimates the fair value of the options to be $5 on the date of grant. what amount should m recognize as compensation expense for 2013? a) $188,000b) $156,667c) $62,666d) $31,333

Option (B) $156,667

Explanation:

Data provided in the question:

Number of stock options granted = 94,000

Fair value of the option-pricing = $5

Vesting period, from December 31, 2015 to January 1, 2019 = 3 years

Now,

Compensation expense to be recognized

= [ Number of stock options granted × fair value of option ] ÷ [ vesting period  ]

= [ 94,000 × 5 ] ÷ 3

= $156,667

Hence,

Option (B) $156,667

answer; i believe that the correct answer is ( owners investment)

x=3

step-by-step explanation:

this is really simple i saw that there was only one term (5x) and thought if that was 15 what would i have to multiply everything else to get it there? well if 5x became 15 then x would have to be 3 so plug the 3 in the x for the other equations and you get 15 for the other ones. so there you go. : )