Addresses the recognizable amount of compensation

Assignment Help HR Management
Reference no: EM1340729

On January 1, 2010, Trent Company granted Dick Williams, an employee, an option to buy 100 shares of Trent Co. stock for $30 per share, the option excercisable for 5 years from date of grant. Using a fair value option pricing model, total compensation expense is determined to be $900. Williams excercised his option on September 1, 2010, and sold his 100 shares on December 1, 2010. Quoted market prices of Trent Co. stock during 2010 was as follows:

January 1 $30 per share
September 1 $36 per share
December 1 $40 per share

The service period is for 2 years, beginning January 1, 2010. As a result of the option granted to Williams, using the fair value method, Trent should recognize compensation expense for 2010 on its books in the amount of:

a) 1,000
b) 900
c) 450
d) 0

Reference no: EM1340729

Questions Cloud

Show the posting addresses skill based plans : Posting addresses skill based plans and compensation and The certification process in skill-based pay is analogous
Show the description of pay for performance : Show the Description of Pay for Performance - The name of the company (I was thinking Kaiser Permanente because over the last couple of years, hospital executive were the five most highly paid CEOs).
Workplace problem : My boss called me into his office the other day to review a project I had been working on. During our meeting, the company president knocked on the door and asked my boss to step outside to discuss an important matter.
Create measurement devices early in the strategy process : Why do we want to create measurement devices early in the strategy process and How do metrics allow us to track the strategy process once it is implemented?
Addresses the recognizable amount of compensation : Williams excercised his option on September 1, 2010, and sold his 100 shares on December 1, 2010. Quoted market prices of Trent Co. stock during 2010 was as follows
Evaluate the pay of a ceo of a large corporation : Is it unfair to increase a CEO's compensation at the same time that he or she downsizes the workforce and What is an ethically justifiable way to determine the pay of a CEO of a large corporation?
What kind of compensation strategies : What kind of compensation strategies does your employer or previous employers implement
Determine base pay for workers : Determining Base Pay for Workers - Explain and describe the importance of the 5 steps (Perform a job analysis
Description of compensation management : What is your definition of compensation and Which meaning of compensation seems most appropriate from an employee's view

Reviews

Write a Review

 

HR Management Questions & Answers

  Propose new hiring practices for the company to follow

Read the case study (BELOW) about Julie. Based on the issues described in this case, propose new hiring practices for the company

  Explain the nine pmi standard project

Explain the nine PMI standard project management knowledge areas in some detail and How do the knowledge areas relate to the process groups? Briefly define important terms.

  Implementing a major change inside an organization

What are the biggest obstacles to overcome when implementing a major change inside an organization and What strategies can be used to overcome them

  Pr situation

impact and perception of the various communication tools that are at my disposal

  Characterize the roles of incentives and education

Explain How would you identify and characterize the roles of incentives, training, and education in promoting innovation in your organization

  Check an issue within that organization

Check an issue within that organization that would have both organizational and societal implications and For that organization, explain how you would address both the organizational and societal audiences.

  Show relation of creating energy in organizations

Show the relation of "creating energy" in organizations to achieving results and Who or how is energy created for the leader?

  What are the benefits of a new hris

What are the benefits of a new HRIS and What are the costs associated with it? Consider both tangible and non-tangible benefits and costs in your answer.

  Determine how a company structures and uses groups or teams

Determine how a company structures and uses groups or teams. Do you feel your organization would be a good fit for you ? Why or why not?

  Balanced scorecard related to operational control

Balanced scorecard related to strategic and operational cont - How is the balanced scorecard related to strategic and operational control

  Explanation of the role of the hr manager

Explanation of the role of the HR manager - What do you think about below quote as a HR manager?

  What are the benefits and stipulations for joining a union

What are the benefits and stipulations for joining a union and Provide an example of a case where a union may become involved in a work related issue for a company.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd