On January 1, 2013, Yummi Snacks issued stock options for 44,000 shares to a division...
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Accounting
On January 1, 2013, Yummi Snacks issued stock options for 44,000 shares to a division manager. The options have an estimated fair value of $5 each. To provide additional incentive for managerial achievement, the options are not exercisable unless Yummi Snacks' stock price increases by 5% in four years. Yummi Snacks initially estimates that it is not probable the goal will be achieved. How much compensation will be recorded in each of the next four years?
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