User Account

All Pages

Prepare the appropriate journal entry to record the exercise

Assignment Help Accounting Basics
Reference no: EM132867284

Problem - Walters Audio Visual Inc. offers an incentive stock option plan to its regional managers. On January 1, 2021, options were granted for 72 million $1 par common shares. The exercise price is the market price on the grant date-$8 per share. Options cannot be exercised prior to January 1, 2023, and expire December 31, 2027. The fair value of the 72 million options, estimated by an appropriate option pricing model, is $1 per option.

Required -

1. Determine the total compensation cost pertaining to the incentive stock option plan.

2. Prepare the appropriate journal entries to record compensation expense on December 31, 2021 and 2022.

3. Prepare the appropriate journal entry to record the exercise of 75% of the options on March 12, 2023, when the market price is $9 per share and the entry on December 31, 2027, when the remaining options that have vested expire without being exercised.

Reference no: EM132867284

Questions Cloud

What effect does borrowing the money on assets : What effect (if any) does borrowing the money on 7/1/20 have on the assets, liabilities, and equity of XYZ Merchandising
Strategy implementation tactic : As the Chief Strategy Officer of Kia Motors & having entered India recently, you have to decide on a Strategy Implementation tactic to take on the fiercely cont
Calculate the break-even point in units and dollars : During the month, fixed costs were $4,320 and variable costs were 40% of sales. Calculate the break-even point in units and dollars
Describe the concept of product differentiation : Google "Product Differentiation" Describe the concept of product differentiation?
Prepare the appropriate journal entry to record the exercise : Prepare the appropriate journal entry to record the exercise of 75% of the options on March 12, 2023, when the market price is $9 per share
Explain the various types of organisation structures : Explain the various types of organisation structures that would best fit different types of organisations.
Determine the month-end payments required on the loan : To purchase his new car, Scooby-Doo has obtained a six-year loan for $40,000 at 8.8% compounded semi-annually.
Gastroesopagel relex disease. : Pathophysiology of the disease( disease manifestation like genetic, what happen in the disease)
Advantages of product diversification : What are other some advantages of product diversification. Other than increasing business overall market share, reducing the impact failure, and gain access to

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd