User Account

All Pages

How should mettle account for the tax effect of share option

Assignment Help Accounting Basics
Reference no: EM132765824

Problem 1: On January 1, 20x1, METTLE STRENGTH Co. issued share options to its employees. The fair value of the share options on grant date is ?2,000,000. The share options vest in three years. METTLE is subject to a tax rate of 30% and is allowed a tax deduction for the intrinsic value of the share options. If the intrinsic value of the share options on December 31, 20x1 is ?1,600,000, how should METTLE account for the tax effect of the share options?

a) recognize income tax benefit of ?160,000 in profit or loss
b) recognize income tax benefit of ?160,000 in equity
c) recognize income tax benefit of ?133,336 in equity
d) recognize income tax benefit of ?133,336 in profit or loss

Reference no: EM132765824

Questions Cloud

How can the information be useful to the public : Charity Navigator (CN), founded in 2001, evaluates and rates individual charitable organizations (nonprofits). The two key areas of performance it considers.
Find how should mettle account for the tax effect : Find how should METTLE account for the tax effect of the share options? On January 1, 20x1, Franklin Co. issued share options to its employees.
What was the number of shares of stock : Baldwin Company had 55,000 shares of common stock outstanding throughout 2009. Th company had outstanding fully vested incentive stock options for 10,000 shares
Explain how plants have adapted to life on land : Explain how plants have adapted to life on land?
How should mettle account for the tax effect of share option : If the intrinsic value of the share options on December 31, 20x1 is ?1,600,000, how should METTLE account for the tax effect of the share options?
Explain primate evolution from a common ancestor : Explain primate evolution from a common ancestor?
MBA 515 Business Environment, Innovations, Entrepreneurship : MBA 515 - Business Environment, Innovations, and Entrepreneurship Assignment Help and Solution - Southern New Hampshire University, USA - Homework Help
What amount of compensation expense recognized for golf view : Fair value per option before the modification of ?100 to ?120 after the modification. What amount of compensation expense shall be recognized in 20x1?
What is the amount of cash that should be received : A sales invoice included the following information: merchandise price, $12,000; terms 1/10, n/eom, FOB shipping point with prepaid freight of $900 added to the.

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