Reference no: EM13129170
As part of its stock-based compensation package, International Electronics granted 24 million stock appreciation rights (SARs) to top officers on January 1, 2006. At exercise, holders of the SARs are entitled to receive 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 SARs cannot be exercised until the end of 2009 (vesting date) and expire at the end of 2011. The $1 par common shares have a market price of $46 per share on the grant date. The fair value of the SARs, estimated by an appropriate option pricing model, is $3 per SAR at January 1, 2006. The fair value re-estimated at De- cember 31, 2006, 2007, 2008, 2009, and 2010, is $4, $3, $4, $2.50, and $3, respectively. All recipients are expected to remain employed through the vesting date.
Required:
1. Prepare the appropriate journal entry to record the award of SARs on January 1, 2006.
2. Prepare the appropriate journal entries pertaining to the SARs on December 31, 2006-December 31 2009.
3. The SARs remain unexercised on December 31, 2010. Prepare the appropriate journal entry on that date.
4. The SARs are exercised on June 6, 2011, when the share price is $50, and executives choose to receive the market price appreciation in cash. Prepare the appropriate journal entry(s) on that date.
What is the ksp of barium carbonate
: The solubility of barium carbonate,BaCO3, is .0100 g/L . Its molar mass is 197.6 . What is the Ksp of barium carbonate?
|
Calculate the unit costs for materials and conversion costs
: Calculate the unit costs for materials and conversion costs. Determine the costs to be assigned to the units transferred out and ending work in process.
|
What is the enthalpy change
: What is the enthalpy change when a 4.0 gram sample of aluminum burns in excess of oxygen to form aluminum oxide?
|
Probability that average of scores of two students greater
: What is the probability that the average of the scores of the two students from university A will be greater than average of the scores of the three students from University B?
|
Stock-based compensation package
: As part of its stock-based compensation package, International Electronics granted 24 million stock appreciation rights (SARs) to top officers on January 1, 2006.
|
Explain how would this amount be reported in the company
: Without regard to your answer in (2) above, assume manufacturing overhead was underapplied in December. Explain how would this amount be reported in the company's financial statements at December 31?
|
The story of an hour
: Consider the major aspects (action/plot, character, setting, & language/voice) of "Clever Manka" and "The Story of an Hour." Describe one (1) of these aspects (by comparing/contrasting the aspect/element) in each story.
|
The role of the supernatura
: The Role of the Supernatural: Both works that we read have elements that take us beyond realism
|
What is amortization loan
: What is amortization loan? Can you give us an amortization loan example, for example, car loan or mortgage loan, and so on?
|