Amazon would like to implement an employee stock-purchase plan for rank-and-file employees, but it would like to avoid recording expense related to this plan. which of the following provisions must be in place for the plan to avoid recording compensation expense?
1. substantially all employees may participate.
2. the discount from market is small (less than 5%).
3. the plan offers no substantive option feature.
4. there is no preferred stock outstanding.
Answers: 3
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