Compensation expense under the fair value method

Assignment Help Finance Basics
Reference no: EM133276199

On January 1, 2020, Sunland Company granted an employee an option to purchase 15500 shares of Sunland's $5 par value common stock at $18 per share. The Black-Scholes option pricing model determines total compensation expense to be $361000. The option became exercisable on December 31, 2021, after the employee completed two years of service. The market prices of Sunland's stock were as follows:

January 1, 2020

$20

December 31, 2021

40

For 2021, should recognize compensation expense under the fair value method of

Reference no: EM133276199

Questions Cloud

What is the accumulated value of savings : Miguel saved $170 at the end of every month for 3 years in his bank account that earned 3.40% compounded monthly.
How many dairy cattle are there in the united states : How many dairy cattle are there in the United States? What is happening to the overall numbers? What is happening to dairy cow production per cow
Performance management for amazon set : What are some key result areas in HR reward, recognition, and performance management for Amazon set, why did they choose these metrics,
How does genetics play in development of bipolar 2 disorders : Bipolar Disorder- A 44-year-old female came to the clinic today brought in by her husband. He notes that she has been with various states of depression.
Compensation expense under the fair value method : On January 1, 2020, Sunland Company granted an employee an option to purchase 15500 shares of Sunland's $5 par value common stock at $18 per share.
Planning to do business in japan : Imagine you are the HR Director for an organization that is planning to do business in Japan.
What made the ceo decide on reporting only the four ratios : What made the CEO decide on reporting only the four ratios? As the controller, what advice would you give the CEO regarding his/her disclosure
Define each term and explain why the terms in a pair : POLS 281 University of North Carolina, Asheville Define each term and explain why the terms in a pair are different. Causally heterogeneous population
Closing entry for owner drawings : CM Coffee & Co had a very profitable year. The owner has decided to withdraw $115,000. As the accountant for CM Coffee & Co., you must determine how to account

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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