Please make the appropriate entry or entries

Assignment Help Cost Accounting

Reference no: EM139698

The SAS Co. granted on million employee stock options on June 30, 2006. Each option allowed the holder to buy one share of SAS common stock at $6, 00 per share, which was also the stock's selling price at that date. The options can be exercised any time after June 30, 2007.
The Company used Black Scholes option pricing model to estimate the fair value of the options at the grant date. That amount was $2 million. Assume the service period in one year, SAS has a 12/31 year-end, and its tax rate is 40%.

a) Under FAS 123R, how would this transaction be reported in SAS's 12/31/09 year-end financial statements( Balance sheet, Income statement, Cash flow statement)

b) Assume that 20 % of the options were terminated in January 2007 because certain employees had very recently left the company, Under FASB 123R, would these terminated options result in some sort of an adjustment? If there is an adjustment, please make the appropriate entry or entries?

Reference no: EM139698

Questions Cloud

Alternative resolution techniques : This assignment asks you to demonstrate your understanding of two alternative resolution techniques.

Prepare entry for this transaction : Interest is payable on November 1 st and May st. (Assume a 360 day year 30 day months) - Prepare the 09/21/08 entry for this transaction.

Determining the cost of research : Godert pharmaceutical company has many scientists working in the labs trying to develop anti-aging drug. The cost of this research and development should be.

Motivation for engaging in the activity : Explain an activity you enjoy (and engage in consistently) and describe your motivation for engaging in that activity by applying the concepts.

Please make the appropriate entry or entries : Under FAS 123R, how would this transaction be reported in SAS's 12/31/09 year-end financial statements-would these terminated options result in some sort of an adjustment? If there is an adjustment, please make the appropriate entry or entries?

Investigating a social issue : Describe how your issue fits into the field of sociology. Find out the sociological theories and terminology from the text that apply to your social issue.

Supremacy provision in federal constitution : Assess the supremacy provision in the Federal constitution. Discuss how the passage of a state tax bill is similar to the passage of a Federal law.

Computation of after-tax cost of debt : Computation of after-tax cost of debt is planning to place privately with a large insurance company

Issue fits into the field of sociology : Explain how your issue fits into the field of sociology. Find out the sociological theories and terminology from the text which apply to your social issue.

User Account

All Pages