Evaluate compensation expense

Assignment Help Financial Accounting

Reference no: EM135930

On 1^st November, 2011, Olympic Company adopted a stock option plan that granted options to key executives to purchase 57,200 shares of the company's $14 par value common stock. The options were granted on 2^nd January, 2012, and were exercisable two years after the date of grant if the grantee was still an employee of the corporation. The options expired six years from date of grant. The option price was set at $57, and the fair value option pricing model evaluates the total compensation expense to be $858,000.

All of the options were exercised in the year 2014: 42,900 on 3^rd January when the market price was $96, and 14,300 on May 1 when the market price was $110 a share

Evaluate compensation expense is recognized on 1/2/12?

Organize journal entries relating to the stock-option plan for the years 2012, 2013, and 2014. Consider that the employee performs services equally in 2012 and 2013

Reference no: EM135930

Questions Cloud

Role of incentives : Suppose the interest rate on 6-month treasury bills is 7 percent per year in the United Kingdom and 4 percent per year in the United States.

What is the most probable cause in this patients case : What veins are most likely involved? What pathologic changes have happened in these veins, and what is the most probable cause in this patient's case.

How many receptors could be accomodated in a 100nm : If a transferrin receptor has a cross-sectional area of 50 Angstroms X 100 angstroms (5x10nm), and how many receptors could be accomodated in a 100nm clathrin-coated vesicle assume that only 50% of surface area can be occupied by proteins.

Perfectly competitive firm : If the market price of the product is 270, how much output should the firm produce in order to maximize profit. How much profit will this firm make.

Evaluate compensation expense : Organize journal entries relating to the stock-option plan for the years 2012, 2013, and 2014. Consider that the employee performs services equally in 2012 and 2013

Evaluate the breakeven point in dollars : Evaluate the number of widgets which must be sold to break even. Evaluate the number of widgets which must be sold to break even. Evaluate the breakeven point in dollars

What is spocks wifes genotype : What is Spock's genotype? What is Spock's wife's genotype? What percentage of their offspring would have the similar phenotype as Spock.

Airline remain in business : Should the airline replace its night flight from LA with a morning flight as well as should the airline remain in business.

Determine his tax basis the end of year : Using the subsequent information from Alfred's year 1, year 2, and year 3 Schedule K-1, determine his tax basis the end of year 2 and year 3.

User Account

All Pages