Determine the total compensation cost

Assignment Help Accounting Basics
Reference no: EM132004149

Question - Magnetic-Optical Corporation offer a variety of share-based compensation plans to employees. Under its restricted stock award plan, the company on Jan 1, 2011 granted 4 million of its $1 par common shares to various division managers. The shares are subject to forfeiture if employment is terminated within 3 years. The common shares have a market price of $22.50 per share on the grant date.

1. Determine the total compensation cost pertaining to the restricted shares.

2. Prepare the appropriate journal entry to record the award of restricted shares on Jan 1, 2011

3. Prepare the appropriate journal entry to record compensation expense on Dec. 31, 2011

4. Suppose Magnetic-Optical expected a 10% forfeiture rate on the restricted shares prior to vesting. Determine the total compensation cost.

Reference no: EM132004149

Questions Cloud

Extraordinary things happen on regular basis in organization : The truth is leadership is an identifiable set of skills and abilities that are available to anyone. It is because there are so many-not so few-leaders
Tips on the brainstorming process : Writing isn't necessary difficult for me, but I do take forever to write papers. I used to enjoy it but now feel flustered that I it takes awhile for me to form
How much will an employee portfolio be worth : How much will an employee's portfolio be worth after working for the company 30 years more? The Human Resource department at EcoCarnifex Corporation was asked.
Form ideas or brainstorm : Writing isn't necessary difficult for me, but I do take forever to write papers. I used to enjoy it but now feel flustered
Determine the total compensation cost : Suppose Magnetic-Optical expected a 10% forfeiture rate on the restricted shares prior to vesting. Determine the total compensation cost
Calculate the bond current yield and yield to maturity : Calculate the bond’s current yield and yield to maturity. Calculate the value per share 4 years from today for stock B
What is the best way to handled poor language : What is the best way to handled poor language situation during a communication and would be been effective during this process.
How much will the final tax liability be : Mr. and Mrs. Smith have three children ages 3, 6, and 12 for which they paid $6,000 in child care expenses this year. Assume the McMurray's tax liability.
What is the value of the decision in given case : Assume Mr. Schellburger is risk neutral. Without any additional information, what will he choose? What is the value of his decision?

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