On January 1, 2021, 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. Farmer initially estimates that it is probable the goal will be achieved. How much compensation will be recorded in 2021, 2022, 2023?

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A: Compensation expense = Total Compensation * 1/3 =$792,000 * 1/3 = $264,000

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A: Total compensation cost = Stock options * Fair value per option

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A: Note:- Since you have posted a question with multiple sub-parts, we will solve the first three…

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A: Given:

Q: Use the following information for the next four questions: On January 1, 20x1, SUFFUSE TO FILL Co.…

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A:

Q: On December 31, 2016, Sedona Inc. granted 160,000 options to key executives. Each option allows the…

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Q: On January 1, 2020, Myeoong Company granted 60,000 share options to employees. The share options…

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A: A contract between the two person which provides the right to the holder to buy or sell a specified…

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A: Amwer with calculations are as follows.

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A: The share appreciation rights are away the organization provides a bonus to its employees and the…

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.