What is reduction in earnings

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Question - Capitalize the asset retirement cost at its undiscounted cash flow value On January 1, 2020, Olson 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. Olson initially estimates that it is probable the goal will be achieved. Ignoring taxes, what is reduction in earnings in 2020?

Reference no: EM132534463

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