For stock appreciation rights, the measurement date for computing compensation is the date
a. the rights mature.
b. the stock's price reaches a predetermined amount.
c. of grant.
d. of exercise.
Answer: of exercise
An executive pays no taxes at time of exercise in a(an)
a. stock appreciation rights plan.
b. incentive stock option plan.
c. nonqualified stock option plan.
d. Taxes would be paid in all of these.
Answer: incentive stock option plan
Under the intrinsic value method, compensation expense resulting from an incentive stock option is generally
a. not recognized because no excess of market price over the option price exists at the date of grant.
b. recognized in the period of the grant.
c. allocated to the periods benefited by the employee's required service.
d. recognized in the period of exercise.
Answer: not recognized because no excess of market price over the option price exists at the date of grant
