On January 2, year 4, Farm Co. granted an employee an option to purchase 1,000 shares of Farm's common stock at $40 per share. The option became exercisable on December 31, year 4, after the employee had completed one year of service, and was exercised on that date. The market prices of Farm's stock were as follows: January 2, year 4: $50 December 31, year 4: $65 Farm uses the intrinsic method of accounting for stock option plans. What amount should Farm recognize as compensation expense for year 4

Steffi is reviewing various licenses and their uses. match the licenses to their respective uses.

Which of the following mechanisms would be most likely to motivate managers to act in the best interests of shareholders? a) decrease the use of restrictive covenants in bond agreements, b) take actions that reduce the possibility of a hostile takeover, c) elect a board of directors that allows managers greater freedom of action, d) increase the proportion of executive compensation that comes from stock options and reduce the proportion that is paid as cash salaries, e) eliminate a requirement that members of the board directors have a substantial investment in the firm's stocks

Asmall town wants to build some new recreational facilities. the proposed facilities include a swimming pool, recreation center, basketball court and baseball field. the town council wants to provide the facilities which will be used by the most people, but they face budget and land limitations. the town has $400,000 and 14 acres of land. the pool requires locker facilities which would be in the recreation center, so if the swimming pool is built the recreation center must also be built. also, the council has only enough flat land to build the basketball court or the baseball field. the daily usage and cost of the facilities (in $1,000) are shown below. which facilities should they build? facilityusagecost ($1,000)landswimming pool4001002recreation center5002003basketball court3001504baseball field2001005