Reference no: EM132807707
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.
Problem 1: 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
Problem 2: If the intrinsic value of the share options on December 31, 20x1 is ?2,400,000, how should METTLE account for the tax effect of the share options?
a. recognize income tax benefit of ?40,000 in profit or loss
b. recognize income tax benefit of ?40,000 in equity
c. recognize income tax benefit of ?166,667 in equity
d. recognize income tax benefit of ?166,667 in profit or loss
|
Human resources strategies
: Imagine you have been hired to oversee the human resources department of a large hospital system. Explain the importance of measuring competencies.
|
|
Impact of strategic management on organisational growth
: Please Explain the Impact of Strategic Management on Organisational Growth and Development amidst the Covid-19 pandemic and help answer this question in relatin
|
|
What boe book value per common share was
: What Boe's book value per common share was? 6% noncumulative preference shares, ?100 par (liquidation value ?105 per share) 1,000,000
|
|
Boost attraction and retention rates
: What strategic changes should be made in order to boost attraction and retention rates? Use examples to support the answer.
|
|
How should mettle account for the tax effect of share option
: If the intrinsic value of the share options on December 31, 20x1 is ?2,400,000, how should METTLE account for the tax effect of the share options?
|
|
What are the pros and cons of using mediation
: From the employer perspective, what are the pros and cons of using mediation, arbitration, and conciliation?
|
|
What should be the accounting entry at the date of purchase
: What should be the accounting entry at the date of purchase of the inventory? Doc, a public limited company, has purchased inventory of P100,000.
|
|
Evaluate and comment of the inland revenue ordinance
: Evaluate and comment whether s.9A of the Inland Revenue Ordinance is applicable to the relationship between Blockchain and Jason
|
|
Make the things and intention of kavery transparent
: He recollected the conversation between him and Kavery on the transfer application of Vijay Kavery says, "Sudan, Vijay is very dynamic.
|