Explanation

The measurements January 2, Year 'I_ At that date, the intrinsic value of the options is US $30.000 [1,000 shares$50 market price -$20 option price)]. This US $30,000 will be recorded as both compensation expense and options outstanding. The net effect on equity is 0. When the options are exercised the US $20,0001.000 shares $20 option price)]. This US $30,000 will be recorded as both compensation expense and options outstanding will be allocated to share capital as US $30,000 of options are exercised, the US $ 20,0001,000 shares x $20 exercise price) cash received and the US $30,000 of options are exercised price) cash received and the US $30,000 of options outstanding will be allocated to share capital as US $10,000 ordinary stock and US $40,000 additional paid in capital. The net effect on equity will be a US $20,000 increase.

Cost of goods sold equals begin rag inventory. plus purchases. m us ending inventory.
Hence cost of goods sold is US $440,000$ 140.000 + $530.000 - $230,000).

If the company acknowledges messages initiated externally, the alleged sender will have the opportunity to recognize that it had not sent the message and will then be able to notify the company of the potential forgery. Then corrective action can be taken by the company.