User Account

All Pages

Determine the total compensation cost pertaining

Assignment Help Financial Accounting
Reference no: EM133206277

A Corporation provides an executive stock option plan. Under the plan, the company granted options on January 1, 2021, that permit executives to acquire 50 million of the company's $1 par value common shares within the next eight years, but not before December 31, 2024 (the vesting date). The exercise price is the market price of the shares on the date of the grant, $30 per share. The fair value of the options, estimated by an appropriate option pricing model, is $5 per option. No forfeitures are anticipated. Ignore taxes.

Required: (show the computing process and precise journal entries)

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, 2021.

3. Prepare the appropriate journal entry (if any) to record compensation expense on December 31, 2021.

4. Prepare the appropriate journal entry on July 1, 2025 assuming half the options are exercised when the market value of the stock is $35.

Reference no: EM133206277

Questions Cloud

What is the result of strategy for the hedge fund manager : A hedge fund manager decided to implement a 3-month carry trade strategy using currencies Z and Y. At the inception of the trading strategy, the 3-month interes
What rate should the bank charge in order to breakeven : You are evaluating a loan request of $13.0 million from Precise Corp (The bank will generously only require an expected return of the principal). The firm has a
Comprehensive financial health check report : Download the year 2020 annual report of Mr. DIY Berhad (MRDIY [5296]) from Bursa Malaysia. Critically appraise and evaluate, provide a comprehensive financial h
Who has identified as most at risk for your safety issue : Who has been identified as most at risk for your safety issue? Where is your safety issue most likely to occur? Why does your safety issue occur?
Determine the total compensation cost pertaining : A Corporation provides an executive stock option plan. Under the plan, the company granted options on January 1, 2021, that permit executives to acquire 50 mill
Comprehensive understanding of the petroleum system : This project is designed to make the student have a comprehensive understanding of the petroleum system and use the knowledge in practice.
Determine the total compensation cost pertaining to the rsus : On January 1, 2021, C Corporation awarded restricted stock units (RSUs) representing 40 million of its $2 par common shares to key officers, subject to forfeitu
How do wrecking balls destroy the masters house without : When writing the curated essay for this assessment? How do wrecking balls destroy the master's house without using the master's tools? Ideas?
Explain one major aspect of management : Explain one major aspect of management and one aspect of leadership that are lessons from the readings and why does it matter to us. Highlight the key words

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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