Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on december 31,2024, sandhill company granted exec

On December 31,2024, Sandhill Company granted executives options to purchase 64000 shares of the company's...

90.2K

Verified Solution

Question

Accounting

image
On December 31,2024, Sandhill Company granted executives options to purchase 64000 shares of the company's $10 par common stock at an option price of $40 per share. The options become exercisable on January 1, 2025 and represent compensation for the executives' services over a three year period beginning January 1, 2025. The Black-Scholes option pricing model determined total compensation expense to be $365700. At December 31,2025 , none of the executives had exercised their options. What is the impact on Sandhill's 2025 net income as a result of this transaction under the fair value method? $121900 decrease $121900 increase $365700 decrease so

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

1. Using the equations describing the standard atmosphere, plot the speed of sound (in m/s, ft/s...

Mechanical Engineering
Q

Is there a material which can allow light (or any other EM radiation) to pass through...

Physics
Q

Find the length of the arc O 15 7 m O 14 8 m O...

Geometry
Q

What is the solution of the quadratic equation 2x 5x 1 0 Solve by using...

Algebra
Q

Which statements are true about the polynomial function x x 5x 6x Select each correct...

Algebra
Q

Citrus Enterprises is upgrading its fruit washing/separating machine. Citrus Enterprises has narrowed the decision down...

Accounting
Q

Bed & Bath, a retailing company, has two departmentsHardware and Linens. The companys most recent...

Accounting
Q

La empresa Pisos Fergusson S.A. compr el 64 por ciento de las acciones con derecho...

Accounting
Q

El proyecto ABC est bajo consideracin. Los flujos de efectivo anuales equivalen a $ 50,000...

Accounting
Q

NOTES: A. Higher Power Sdn Bhd (HPSB) is a new...

Accounting
Q

Question 9 11 points Sve A Uncle Elmo needs to replace the family privy. The...

Accounting
Q

Cosh Receipts Irom Customers

Accounting