User Account

All Pages

Find the amount of compensation expense Oriole should record

Assignment Help Accounting Basics
Reference no: EM132736978

Question - Oriole Company on January 1, 2018, granted stock options for 62000 shares of its $10 par value common stock to its key employees. The market price of the common stock on that date was $21 per share and the option price was $20. The Black-Scholes option pricing model determines total compensation expense to be $630000. The options are exercisable beginning January 1, 2021, provided those key employees are still in Oriole's employ at the time the options are exercised. The options expire on January 1, 2022.

Find the amount of compensation expense Oriole should record for 2020 under the fair value method?

a. $0.

b. $105000.

c. $210000.

d. $315000.

Reference no: EM132736978

Questions Cloud

Journalize the transactions using perpetual inventory system : May 15 Received $299 refund for return of poor-quality merchandise from supplier on cash purchase. Journalize the transactions using perpetual inventory system
What is the total capitalized cost of the mine : The present value of this restoration cost using the credit-adjusted risk free interest rate is $2,381,490. What is the total capitalized cost of the mine
What was New England cash balance at the end of the year : New England Co. had net cash provided by operating activities of $351,000; What was New England's cash balance at the end of the year
Prepare income statement and balance sheet : Sold to Business Inn 20 sacks "white rice" at P1,550 per sack, cash. Paid CLC Trucking Services delivery cost for P8,500. Prepare income statement
Find the amount of compensation expense Oriole should record : The market price of the common stock on that date was $21 per share and the option price was $20. Find the amount of compensation expense Oriole should record
Compute the Residual Income : The following information pertains to Q Company's Gold Division for the current year; Sales P310,000. Compute the Residual Income
What amount of cash should Berg contribute : The building is subject to a P40,000 mortgage that the partnership will assume. What amount of cash should Berg contribute
Build effective teamwork relationships among city employees : What methods may be utilized to build effective teamwork relationships among city employees? How may the city's values and motives help build teamwork?
Identify and explain the threat to independence : Identify and explain the threat to independence. Determine whether Chris would be able to accept the audit if he won the tender

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.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  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!

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