Reference no: EM1357170
Listed below are transactions dealing with various stock benefit plans of Fortune-Time Corporation during the period 2009-2011. The market price of the stock is $45 at January 1, 2009.
a. On Jan. 1,09, the company issued 10 million common shares to divisional managers under its restricted stock award plan. The shares are subject to forfeiture if employment is terminated within three years.
b. On Jan. 1,09, the comp. granted incentive stock options to its senior management exercisable for 1.5 million common shares. The options must be exercised within 5 years, but not before Jan. 1,10. The exercise of the stock options is equal to the fair market value on the CS on the date of options are granted. An option pricing model estimates the fair value of the options to be $4 per option. All recipients are expected to remain employed through the vesting date.
c. On jan. 1,09, the company granted 4 million Stock Appreciation Right's (SAR's) to its junior managers. The SAR's entitle managers to receive their choice of cash or stock equal in value to the excess of the market price at exercise over the share price at the date of grant. The SAR's vest at the end of 2010 ( can not be exercise until then)and expire at the end of 2011. The fair value of the SAR's is $4 at jan.1,08. The fair value is $5 and $4 at Dec. 31,10, respectively.
d. Recorded compensation expense on Dec. 31, 09.
e. A divisional manager holding 1 million of the restricted shares left the company to become CEO of a competitor on Sep. 15,09, before the required service period ended.
f. Recorded compensation expense on Dec. 31,09
Required:
Prepare the Journal entries that Fortune-Time recorded for each of these transactions. (Ignore any tax effects).
|
Pathophysiology of hepatitis b
: A 40-year-old man has chronic hepatitis B. What may be the cause of his condition? Describe the pathophysiology of hepatitis B.
|
|
Explaining characteristic of san or a nas configuration
: Storage Area Networks (SAN) and Network Attached Storage (NAS) each give high capacity file storage. For the following list, indicate whether the list item is more characteristic of a SAN or a NAS configuration.
|
|
What was the wheels angular acceleration
: An 24 g rifle bullet traveling 370 m/s buries itself in a 4.8 kg pendulum hanging on a 2.6 m long string, which makes the pendulum swing upward in an arc. find the maximum vertical displacement of the pendulum.
|
|
Illustrate what happens to the market-clearing real interest
: Government purchases rise to 1440. How does this increase change the equation describing desired national saving? Show the change graphically. Illustrate what happens to the market-clearing real interest rate.
|
|
Prepare journal entries that fortune-time recorded
: Listed below are transactions dealing with various stock benefit plans of Fortune-Time Corporation during the period 2009-2011. The market price of the stock is $45 at January 1, 2009. Prepare the Journal entries that Fortune-Time recorded for each..
|
|
Explain new employee socialization
: Show effective methods for new employee socialization. Describe methods of new employee socialization you have experienced or observed.
|
|
Calculate levered beta
: Swannee Resorts is considering a new project whose data are shown below. The equipment that would be used has a 3-year tax life, would be depreciated by the straight line method over the project's 3 year life, with zero salvage value.
|
|
Coping with stress as a counselor
: Explain how you will cope with stress as a counselor. Be clear about what you feel will cause you the most stress as a counselor. Discuss how coping with stress is related to ethics.
|
|
Show media depictions of violence promote violence
: Who threw the first punch - Explain what is your opinion regarding whether or not media depictions of violence promote violence
|