Exhibit 15-5 On January 1, 2016, Roberts Company Adopts a Compensatory Share

Short Answer

Exhibit 15-5
On January 1, 2016, Roberts Company adopts a compensatory share option plan and grants 40 executives 1,000 shares each at $30 a share. The fair value per option is $7 on the grant date. The company estimates that its annual employee turnover rate during the service period of three years will be 4%.
-Refer to Exhibit 15-5. The journal entry to record compensation expense for 2016 will be Round your final answer to the nearest whole dollar.)