1. On January 1, 2021, M Company granted 96,000 stock options to certain executives. The options are exercisable no sooner than December 31, 2023, and expire on January 1, 2027. Each option can be exercised to acquire one share of $1 par common stock for $13. An option-pricing model estimates the fair value of the options to be $3 on the date of grant. If unexpected turnover in 2022 caused the company to estimate that 15% of the options would be forfeited, what amount should M recognize as compensation expense for 2022? 2. On January 1, 2021, M Company granted 94,000 stock options to certain executives. The options are exercisable no sooner than December 31, 2023, and expire on January 1, 2027. Each option can be exercised to acquire one share of $1 par common stock for $9. An option-pricing model estimates the fair value of the options to be $4 on the date of grant.
3. If unexpected turnover in 2022 caused the company to estimate that 20% of the options would be forfeited, what amount should M recognize as compensation expense for 2022?
On January 1, 2021, Albacore Company had 340,000 shares of its common stock issued and outstanding. Albacore issued a 7% stock dividend on July 1, 2021. On October 1, 2021, Albacore retired 12,000 of its common shares. When calculating basic earnings per share for 2021, what is the appropriate number of shares for Albacore to use in the denominator of the EPS fraction?1.