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Business, 24.04.2020 20:16 merzedes

On January 1, 2018, Farmer Fabrication issued stock options for 100,000 shares to a division manager. The options have an estimated fair value of $6 each. To provide additional incentive for managerial achievement, the options are not exercisable unless divisional revenue increases by 5% in three years. Suppose that Farmer initially estimates that it is not probable the goal will be achieved, but then after one year, Farmer estimates that it is probable that divisional revenue will increase by 5% by the end of 2020. Required: 1. What is the revised estimate of the total compensation

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On January 1, 2018, Farmer Fabrication issued stock options for 100,000 shares to a division manager...
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