Ssg cycles manufactures and distributes motorcycle parts and supplies. employees are offered a variety of share-based compensation plans. under its nonqualified stock option plan, ssg granted options to key officers on january 1, 2018. the options permit holders to acquire 5 million of the company’s $1 par common shares for $29 within the next six years, but not before january 1, 2021 (the vesting date). the market price of the shares on the date of grant is $31 per share. the fair value of the 5 million options, estimated by an appropriate option pricing model, is $8.7 per option.
required:
1. determine the total compensation cost pertaining to the incentive stock option plan.
2. prepare the appropriate journal entries to record compensation expense on december 31, 2018, 2019, and 2020.
3. record the exercise of the options if all of the options are exercised on may 11, 2022, when the market price is $32 per share.

Suppose that a monopolistically competitive restaurant is currently serving 260 meals per day (the output where mr

Cardinal company is considering a project that would require a $2,725,000 investment in equipment with a useful life of five years. at the end of five years, the project would terminate and the equipment would be sold for its salvage value of $400,000. the company’s discount rate is 14%. the project would provide net operating income each year as follows: sales $2,867,000 variable expenses 1,125,000 contribution margin 1,742,000 fixed expenses: advertising, salaries, and other fixed out-of-pocket costs $706,000 depreciation 465,000 total fixed expenses 1,171,000 net operating income $571,000 1. which item(s) in the income statement shown above will not affect cash flows? (you may select more than one answer. single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. any boxes left with a question mark will be automatically graded as incorrect.) (a)sales (b)variable expenses (c) advertising, salaries, and other fixed out-of-pocket costs expenses (d) depreciation expense 2. what are the project’s annual net cash inflows? 3.what is the present value of the project’s annual net cash inflows? (use the appropriate table to determine the discount factor(s) and final answer to the nearest dollar amount.) 4.what is the present value of the equipment’s salvage value at the end of five years? (use the appropriate table to determine the discount factor(s) and final answer to the nearest dollar amount.) 5.what is the project’s net present value? (use the appropriate table to determine the discount factor(s) and final answer to the nearest dollar amount.)

Russell's study compared gpa of those students who volunteered for academic study skills training and those who did not elect to take the training. he found that those who had the training also had higher gpa. with which validity threat should russell be most concerned?