Connect .> C Secure ! https://newconnect.mheducation.com/flow/connect.html Ch. 1

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Connect .> C Secure ! https://newconnect.mheducation.com/flow/connect.html Ch. 19 - Brief Exercises (80 minutes) Saved Help Save & Exlt Submlt 3 Check my work Brief Exercise 19-11 Options with market-based conditions [LO19-2] On October 1, 2018, Farmer Fabrication issued stock options for 300,000 shares to a division manager. The options have an estimated fair value of $7 each. To provide additional incentive for managerial achievement, the options are not exercisable unless Farmer Fabrication's stock price increases by 3% in four years. Farmer initially estimates that it is not probable the goal will be achieved. 6.25 points eBook How much compensation will be recorded in each of the next four years? References mpensation Mc Graw Hill ???@) a a e 8:35 PM ^??4, 4/17/2018 |

Explanation / Answer

Compensation will be recorded in each of the next four years is 0 because it is not probable the goal will be achieved.

Compensation 0

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