Compensation Expense On January 1, 2019, Phoenix Corporation adopts a performance-based share option plan for 25...
Compensation Expense
On January 1, 2019, Phoenix Corporation adopts a performance-based share option plan for 25 executives, with the number of shares based on the yearly increase in sales. At the end of 2019, based on a 10% increase in sales, it expects that each executive will be granted 150 options and that the fair value of an option expected to vest is $15.75. Phoenix expects a turnover rate of 15% over the 3-year service period.
Determine the compensation expense for 2019 for this plan. Round your answer to the nearest whole dollar. (Its not 16,880)
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![Tthe compensation expense for 2019: [Fair value per option * Estimated number of share option expected to vest] * (Expired pe](http://img.homeworklib.com/questions/54dde290-6e43-11ea-8942-eb76aaaf4df3.png?x-oss-process=image/resize,w_560)
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Compensation Expense
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