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QUESTION
On January 1, 2019, Green Inc. issued stock options for 200,000 shares to a division manager. The options have an estimated fair value of $6 each.
On January 1, 2019, Green Inc. issued stock options for 200,000 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 6% in three years.
Green initially estimates that it is probable the goal will be achieved. Ignoring taxes, what is
compensation expense for 2019?
