Compute recognize compensation expense

Assignment Help Accounting Basics
Reference no: EM132438947

Question - On January 1, 2014, Sharp Corp. granted an employee an option to purchase 12,000 shares of Sharp's $5 par value common stock at $20 per share. The Black-Scholes option pricing model determines total compensation expense to be $280,000. The option became exercisable on December 31, 2015, after the employee completed two years of service. The market prices of Sharp's stock were as follows: January 1, 2014 $30 December 31, 2015 50 For 2015, should recognize compensation expense under the fair value method of

a. $180,000.

b. $60,000.

c. $140,000.

d. $0.

Reference no: EM132438947

Questions Cloud

Explain the difference in reaction rates described : Use Le Chatelier's principle to explain the difference in reaction rates described in part a.
What is the boiling point of a mixture composed : What is the boiling point of a mixture composed of 95.0 g HOCH2CH2OH (ethylene glycol) and 195 g H2O? The boiling point elevation constant for H2O is 0.512 °C/m
What biggest challenge in class semester : What do you perceive to be your biggest challenge in this class this semester? How might you plan to overcome that challenge?
What is the formal charge of atom in structures : What is the formal charge of each atom in your structures? Which structure is most consistent with the experimental data?
Compute recognize compensation expense : The market prices of Sharp's stock were as follows: January 1, 2014 $30 December 31, 2015 50 For 2015, should recognize compensation expense
Analyze the universal model of leadership : Analyze the Universal Model of Leadership in the text, and compare it to one other model to see the similarities and differences.
What orbital hybridizations are consistent : Draw valid lewis structures for each of these ions. What orbital hybridizations are consistent with the molecular geometries?
What conclusion can be drawn based on the observation : What conclusion can be drawn based on the observation? Be sure to note the outcome and test variables in the conclusion
Explain role of trade in international production structure : Discuss and explain the role of trade in the international production structure. Why is the issue of production and trade so controversial?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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