User Account

All Pages

How much compensation expense should they recognize

Assignment Help Accounting Basics
Reference no: EM133067873

Question - SMR Corp. granted 226,000 stock options to employees on 12/31/2019 as compensation over the next 3 years. The options had a strike price of $74 per share and market prices of $89 on 12/31/2020 and $85 on 12/31/2021. If they originally estimated the original fair value to be $2,260,000, how much compensation expense should they recognize on 12/31/2021, assuming that the options can only be used to purchase stock?

a. $3,390,000

b. $904,000

c. $2,486,000

d. $753,333

Reference no: EM133067873

Questions Cloud

How much would appear on the balance sheet : If management expects that only 30% of the NOL benefit will actually be realized, how much would appear on the balance sheet
Briefly explain the statement of cash flows : 1) Briefly explain the statement of cash flows. 2) Briefly explain the purposes of the cash flow statement.
What is the net present value of project : XYZ is considering a project that would last for 3 years and have a cost of capital of 23.40 percent. The relevant level of net working capital for the project
Internship Course and Computer systems architecture : Ethics are always important, both personally and in business. which either you or someone in your organization leadership demonstrated ethical behavior.
How much compensation expense should they recognize : If they originally estimated the original fair value to be $2,260,000, how much compensation expense should they recognize on 12/31/2021
Merck debt to capitalization : Over the last two decades, pharmaceutical companies have been slowly increasing their leverage. For example, in 2001, Merck had a Debt to Capitalization ratio o
What is the net interest margin : A bank has interest income of $130 million and interest expenses of $100 million. The amount of assets of the bank is $1 billion. What is net interest margin
Find the current price : A corporate bond with a 6% coupon (paid semiannually) has a yield to maturity of 7.5%. The bond matures in 20 years but is callable at $1050 in ten years.
Explain the two-way sorting investment strategy : Please explain the two-way sorting investment strategy based on Fama-French 3-factor model.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Develop a new information security policy

If you were asked by your employer to Develop a new Information Security Policy, where would you turn to find resources to build this policy?

  Widowed mother during the year

Grace provides 52% of the household costs for her widowed mother during the year. Grace claims her mother as a dependent. Can Grace file a return as head of Household if her mother does not live with her? Explain the reason behind your answer?

  Provide a theoretical analysis of the quality of reporting

Provide a theoretical analysis of the quality of corporate environmental reporting incorporating both preparer- and user-based views

  Sutherland manufactures and sells 110000 laser printers

sutherland manufactures and sells 110000 laser printers each month. a principal component part in each printer is its

  Compute the price quimby paid

the bonds will mature in six years. Using the PV function in Excel, compute the price Quimby paid (the present value) on the bond investment

  What is the project NPV

A project has annual cash flows of $5,000 for the next 10 years and then $9,000 each year for the following 10 years. What is the project NPV

  How the fiji government can work better in combating issues

Provide suggestions as how the Fiji government can work better in combating the issues experienced from Covid-19 pandemic.

  What are the partners respective shares of the bank loan

A, B and C are the members of All, LLC, a limited liability company that is treated as a partnership for federal income tax purposes. If the requested indemnities are given, what are the partners' respective shares of the bank loan allocated to th..

  Journalize the transactions of november

Augusta Gardens Inc. develops and produces spraying equipment for lawn maintenance and industrial uses. Journalize the transactions of November 10

  Compute the purchase price of the bonds

At the beginning of current year, Havoc Company puchased ten-year bonds with a face amount of P5,000,000. Compute the purchase price of the bonds

  Determining cash basis and accrual basis of accounting

Explain the difference between the cash basis and accrual basis of accounting. Explain the difference between the cash basis and accrual basis of accounting?

  Find the inventory turnover ratio for Ben company

During the past six months, Ben sold goods that cost $43,500, his expenses totaled $3,500, Find the inventory turnover ratio for Ben's company

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