Calculate the amount of compensation expense

Assignment Help Accounting Basics
Reference no: EM132649170

Question - On June 30, 2018, Kinshasa Corp. granted stock options for 30,000 of its no par value common shares to key employees, at an option price of $36. On that date, the market price of the common shares was $32. The Black-Scholes option pricing model determined total compensation expense to be $720,000. The options are exercisable beginning January 1, 2021, provided the key employees are still employed by Kinshasa at the time the options are exercised. The options expire on June 30, 2022. On January 2, 2021, when the market price of the shares was $42, all 30,000 options were exercised. Calculate the amount of compensation expense Kinshasa should have recorded for calendar 2020?

a. $120,000.

b. $288,000.

c. $360,000.

d. $720,000.

 

Reference no: EM132649170

Questions Cloud

FSSEGL201 Examine routine literary and non-literary texts : FSSEGL201 Examine routine literary and non-literary texts Assignment Help and Solution, TAFE NSW - Assessment Writing Service
Do voluntariness morally important in euthanasia decisions : Do you think that voluntariness is morally important in euthanasia decisions? How important do you think that it is? For exampl
Decision makers in major hurricane and flood : How GIS could support decision makers in a major hurricane and flood. how GIS could help the emergency management professionals plan for
Analyze major ethical theory in history of moral philosophy : Analyze the major ethical theories in the history of moral philosophy as put forward by philosophers in key ethical texts. Discuss the ethics of euthanasia
Calculate the amount of compensation expense : On January 2, 2021, when the market price of the shares was $42, all 30,000 options were exercised. Calculate the amount of compensation expense
Texas is made up of cities-towns and communities : Like every state, Texas is made up of cities, towns and communities. Do you think it should vary by policy area?
What distinguishes a sunni from a shiite muslim : Using specific examples, explore some of the different interpretations of Islam proffered by Islamists and more moderate Muslims.
Inflation rate in 2011-greenland play : -Suppose that the residents of Greenland play golf incessantly. In fact, golf is the only thing that they spend their money on. They buy golf balls, clubs, and
Record the entry to close the revenue accounts : November 17 Purchase supplies on account, $32,000.6. December 30 Pay dividends, $3,000. Record the entry to close the revenue accounts

Reviews

Write a Review

Accounting Basics Questions & Answers

  Compute effective interest rate or effective cost of bond

Compute the effective interest rate or effective cost of bond. March 1 and September 1, 2017 to pay interest and amortize the bond premium

  Maturity coupon bid price asked price asked yield 2012 may

enter question here...refer the table below maturity coupon bid price asked price asked yield 2012 may 15 1.375 10105

  Gross profit method eastman company

Gross Profit Method Eastman Company lost most of its inventory in a fire in December just before the year-end physical inventory was taken. Corporate records disclose the following.

  List the steps that company using a traditional cost system

List the steps that a company using a traditional cost system would take to implement activity-based costing

  Compute the margin of safety in dollars

Dampf Inc. has provided the following data concerning its only product: Compute the margin of safety in both dollars and as a percentage of sales

  Difference in relative increase in sales over

a) Find the 90% confidence interval for the difference in relative increase in sales over this time period. b) Is there a significant difference in increase in sales be- tween these two groups of stores? Explain.

  Consolidated financial statements workpapers

Prepare, in general journal form, the workpaper entries relating to the intercompany sale of equipment that are necessary in the December 31, 2012 consolidated financial statements workpapers.

  Ex question northwest airlines awards members of its

ex question northwest airlines awards members of its frequent fliers club one free rpimd-trip ticket anywhere on its

  Prepare a statement of cash flows in good

A Boscia Corporation's balance sheet appears below.  The net income for the year was $108. Cash dividends were $28. Prepare a statement of cash flows in good form using the indirect method.

  Selling comics is serious business

Just about everyone remembers a favourite comic book hero from childhood-whether it was Spiderman, Tin Tin, or even Garfield. LeonAvelino and Barry Matthews readily admit that they are kids in grown-up bodies with real day jobs (Avelino works for ..

  Calculate the initial investment amount

The new hi tech equipment can be purchased for $200,000 including installation as at January 1, 2014. Calculate the initial investment amount

  How much is the direct materials price variance

The standard quantity for actual units produced is 7,000 pounds. How much is the direct materials price variance? Show your work

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd