If unexpected turnover in Year 2 caused Fields to estimate that 15% of the options would be forfeited, what amount of compensation expense should Fields recognize in Year 2?
A) $0
B) $210,000
C) $300,000
D) $600,000
Answer: B
Explanation: B) 100,000 × $9 = $900,000 × 85% = $765,000 × 2/3 = $510,000 - $300,000 = $210,000
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