Option pricing model determines total compensation expense

Assignment Help Financial Accounting

Reference no: EM131215850

On January 1, 2016, Ritter Company granted stock options to officers and key employees for the purchase of 15,000 shares of the company's $1 par common stock at $20 per share as additional compensation for services to be rendered over the next three years. The options are exercisable during a five-year period beginning January 1, 2019 by grantees still employed by Ritter. The option pricing model determines total compensation expense to be $135,000. The journal entry to record the compensation expense related to these options for 2016 would include a credit to the Paid-in Capital—Stock Options account for

Reference no: EM131215850

Questions Cloud

What are the core skills and knowledge you hope to acquire : What are the core skills and knowledge you hope to acquire by completing a degree in this major and how do you plan to apply these when you graduate?

Discuss transfer-pricing issues-computer equipment division : The Consulting Division of IBM Corporation is often involved in assignments for which IBM computer equipment is sold as part of a systems installation. Discuss the transfer-pricing issues that both the Computer Equipment Division manager and the Cons..

What is the current through each bulb : Six light bulbs are connected in parallel across 120 V. Each bulb is rated at 75 W. What is the current through each bulb, and what is the total current?

Discuss some of the benefits and challenges of virtual teams : Discuss some of the benefits and challenges of virtual teams using the text to support your points. Page 219 in the text explains some cultural influences for global virtual teams.

Option pricing model determines total compensation expense : On January 1, 2016, Ritter Company granted stock options to officers and key employees for the purchase of 15,000 shares of the company's $1 par common stock at $20 per share as additional compensation for services to be rendered over the next three ..

Discuss educations meaning both in a different era and today : Discuss Educations meaning both in a different era and today. Include the dictionary definition (Denotative Meaning) of the word/term, if possible what was the actual definition 40-50 years ago in comparison to today.

What is the bet amount to be paid to the employer : An employee receives an hourly rate of $18 with time and a half for all hours worked in excess of 40 during the week. Payroll days for the hot rent week are as follows: hours worked, 47. Federal income tax withheld, $150. Cumulative earnings for the ..

What is the journal entry to record the purchase : During the prior fiscal year, a company signed a long-term noncancellable purchase commitment with its primary supplier to purchase $2.3 million of raw materials. He paid the $2.3 million to acquire the raw materials when the raw materials were only ..

User Account

All Pages