Walters audio visual inc. offers an incentive stock option plan to its regional managers. on january 1, 2018, options were granted for 20 million $1 par common shares. the exercise price is the market price on the grant date—$6 per share. options cannot be exercised prior to january 1, 2020, and expire december 31, 2024. the fair value of the 20 million options, estimated by an appropriate option pricing model, is $1 per option. required: 1. determine the total compensation cost pertaining to the incentive stock option plan. 2. to 5. prepare the appropriate journal entries to record compensation expense on december 31, 2018 and 2019. prepare the appropriate journal entry to record the exercise of 75% of the options on march 12, 2020, when the market price is $7 per share and the entry on december 31, 2024, when the remaining options that have vested expire.

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

answer; (c) communism and socialism;