on january 1, 2009, sellers corp. granted an employee an option to purchase 6,000 shares of seller's $5 par value common stock at $ 20 per share. the black-scholes option pricing model determines total compensation expense to be $ 140,000. the option became exercisable on december 31, 2010, after the employee completed two years of service. the market prices of seller's stock were as follows: january 1, 2009 $ 30 december 31, 2010 $ 50 for 2010, sellers should recognize compensation expense under the fair value method of

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Sellers should recognize compensation expense under the fair value method of $70,000.

The fair value of an asset  is ideally derived from discernible market costs of comparable transactions. Fair value is calculated by staring at what a virtually identical item has already oversubscribed for. Assets are recorded at their current worth on the date the worth is calculated, not the historical price.

A stock is a general term accustomed describe the possession certificates of any company. A share, on the opposite hand, refers to the security of a selected company. Holding a selected company's share causes you to a investor. Description: Stocks are of 2 types—common and most well-liked.

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