Determine the total compensation cost pertaining

Assignment Help Accounting Basics

Reference no: EM13136595

Corporation provides an executive stock option plan.Under the plan,the company granted options on January 1,2009,that permit executives to acquire 70 million of the company's $1 par value common shares withing the next eight years,but not before December 31,2012(the vesting date).The exercise price is the market price of the shares on the date of the grant,$27 per share.The fair value of the options,estimated by an appropriate option pricing model,is $4 per option.No forfeitures are anticipated.Ignore tax.

Required:

1.Determine the total compensation cost pertaining to the options.

2.Prepare the appropriate journal entry(if any)to record the award of options on January 1,2009.

3.Prepare the appropriate journal entry(if any)to record compensation expense on December 31,2009.

Reference no: EM13136595

Questions Cloud

What is the density of olive oil : one cup is equivalent to 237 cm^3. In 1 cup of oil has a mass of 216 g. What is the density of olive oil in g/cm^3

Disadvantages of new york city government system : What are the advantages and disadvantages of New York City's government system for its citizens? How is the provision of funds to local sub governments affected or optimized by New York City's governance system?

How many milliliters of 4.21 m naoh are needed : How many milliliters of 4.21 M NaOH are needed to completely neutralize 76.9 mL of 0.340 M H3PO4? The reaction is 3NaOH(aq) + H3PO4(aq) → Na3PO4(aq) + 3H2O(l)

Political polls and voter turnout : The media's early declarations of a winner depress voter turnout in areas where the polls are still open. What else must I describe in order to make this idea an acceptable explanation? Is my hypothesis testifiable?

Determine the total compensation cost pertaining : 1.Determine the total compensation cost pertaining to the options. 2.Prepare the appropriate journal entry(if any)to record the award of options on January 1,2009.

Find historical proportion of customer delight for b of a : The true proportion of all current B of A customers who would respond with a 9 or 10. Are we 95 % confident that this proportion exceeds .48 the historical proportion of customer delight for B of A?

Overview of the annual budget cycle : Give a brief, general overview of the Annual Budget Cycle, from the president's budget through budget implementation. Brief means to provide only a couple sentences on each major part of the cycle.

What was the percent (by mass) of acetic acid in the sample? : A 15.6 mL sample of vinegar, containing acetic acid, HC2H3O2, was titrated using 0.6216 M NaOH solution. The titration required 19.80 mL of the base. Assuming the density of the vinegar to be 1.0 g/mL, what was the percent (by mass) of acetic acid..

Why would an agency fund not have revenue : agency funds report assets and liabilities, but not net assets, revenues, or expenses. Briefly explain why this is so. For example, why would an agency fund not have revenue? Why would it not have expenses?

User Account

All Pages