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School
Southern New Hampshire University **We aren't endorsed by this school
Course
ACCOUNTING ACC 318
Subject
Accounting
Date
Nov 5, 2023
Pages
1
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Question 14 of 20 < > 171 View Policies Show Attempt History v Your answer is correct. On December 31, 2024, Pharoah Company granted some of its executives options to purchase 178000 shares of the company's $10 par common stock at an option price of $50 per share. The Black-Scholes option-pricing model determines total compensation expense to be $1350300. The options become exercisable on January 1, 2025 and represent compensation for executives' services over a three-year period beginning January 1, 2025. As of December 31, 2025, none of the exacutives had exercised their options. If the fair value method is used, what is the impact on Pharoah's net income for the year ended December 31, 2025 as a result of this transaction? 20 $450100 decrease $£450100 increase $1350300 decrease eTextbook and Media Attempts: 1 of 2 used
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