Reference no: EM133121410
Question - Stock Options - On January 1, 2021, Red Lake Corporation issued stock options for its common shares to executive officers. The options are exercisable beginning on January 1, 2023, provided the executive officers are still employed by Red Lake at the time the options are exercised. On June 15, 2025, 3 quarters of the stock options were exercised. The remainder of the options expired on December 31, 2026. Other information pertaining to the stock option plan follows:
Total compensation according to a fair value options pricing model $863,084
Total number of shares that could be purchased with the stock options 68,442
The option price per share is $24
The market price of Red Lake common shares on January 1, 2021 $24
The market price of Red Lake common shares on June 15, 2025 $34
Assume that Red Lake Corporation follows ASPE, and opts to account for employee stock option forfeitures as they occur.
Required -
1. What type of stock option plan has been granted? Explain your rationale.
2. Make all journal entries required for the stock option plan for the 2021 year to 2026 year. Assume that Red Lake Corporation has a December 31 year-end.
|
Calculate the coefficient of variation
: Stock BarBell on the Barbados stock exchange has an average return of 4.8% and a variance of 7.84. Calculate the Coefficient of Variation
|
|
Calculate its book value at the end of year
: A machine that cost $180,000 has an estimated residual value of $20,000 and an estimated useful life of four years. Calculate its book value at the end of year
|
|
What is the effective annual rate on this arrangement
: A firm sells its $1,200,000 receivables to a factor firm that specializes in collecting receivables for $1,060,000. What is the effective annual rate
|
|
Make the journal entry for the issuance of bonds on january
: Transformational Airlines issued several convertible bonds with a face value of $1,000 each on January 1, 2021. Make the journal entry for the issuance of bonds
|
|
Make all journal entries required for the stock option plan
: Make all journal entries required for the stock option plan for the 2021 year to 2026 year. Assume that Red Lake Corporation has a December 31 year-end
|
|
What would be its effective annual interest rate
: A Treasury bill with face value of $124,000 and maturity of 6 months sells for $115,000. What would be its effective annual interest rate
|
|
What is the change in operating profit for the company
: The current demand for standard pens is 35,000,000 units. What is the change in operating profit for the company if the order is accepted
|
|
What is the minimum amount of cash that Hendrick receive
: If the noncash assets are sold for a total of $54,000, what is the minimum amount of cash that Hendrick could receive
|
|
What amount is the minimum selling price per unit
: Question - A company normally sells a product for $12 per unit. What amount is the minimum selling price per unit
|