What amount should G charge to compensation expense

Assignment Help Cost Accounting
Reference no: EM133146973

Question - On January 1, 2021, G Corp. granted stock options to key employees for the purchase of 85,000 shares of the company's common stock at $26 per share. The options are intended to compensate employees for the next two years. The options are exercisable within a four-year period beginning January 1, 2023, by the grantees still in the employ of the company. No options were terminated during 2021, but the company does have an experience of 3% forfeitures over the life of the stock options. The market price of the common stock was $32 per share at the date of the grant. G Corp. used the Binomial pricing model and estimated the fair value of each of the options at $11. What amount should G charge to compensation expense for the year ended December 31, 2021?

Reference no: EM133146973

Questions Cloud

Demonstrate your ability to write a simple iot platform : Demonstrate your ability to write a simple IoT platform - Write a simple program to generate some sample outputs from your system
What is the number of shares to used in computing basic EPS : Additional shares issued 9/30 120,000. A 11% stock dividend was paid on December 1. What is the number of shares to be used in computing basic EPS
What is basic EPS : At December 31, 2021, Hansen Corporation had 49,000 shares of common stock and 5,200 shares of 11%, What is basic EPS
PROG6002 Programming Internet of Things Assignment : PROG6002 Programming Internet of Things Assignment Help and Solution, Southern Cross University - Assessment Writing Service
What amount should G charge to compensation expense : The options are intended to compensate employees for the next two years. What amount should G charge to compensation expense for the year ended December 31 2021
Calculate the cost of the asset at initial recognition : An after-tax discount is 9% per annum. Assume a tax rate of 28%. Calculate the cost of the asset at initial recognition
How much he will save by the end of the third year : Question - Matt plans to start his own business once he graduates from college. Determine how much he will save by the end of the third year
What is the current market value of this preferred stock : If you know that investors require a 13 percent pre-tax rate of return on this preferred stock, what is the current market value of this preferred stock
Calculate the present values of each alternative : Your mother is in reasonably good health and expects to live for at least 17 more years. Calculate the present values of each alternative

Reviews

Write a Review

Cost Accounting Questions & Answers

  Compute the variable overhead rate

The company uses standards to control its costs. To finish one unit, 10 minutes is required. Compute the variable overhead rate

  How do find what inventoriable costs are

Find what Inventoriable costs are? recorded as expenses when incurred and later reclassified as assets. / category of costs used only for manufacturing company

  What the units cost in each completed job must be

What the units cost in each completed job must be? Job 72 is special in nature because of strict specifications. Factory overhead is charged at P.40 per unit

  Compute the total manufacturing costs and the unit costs

Drilling has just completed 70 units of a component for a customer. Compute the total manufacturing costs and the unit costs

  Create journal entries to record the issuance

Create journal entries to record the issuance of 100,000 shares of common stock at $20 per share for each of the subsequent independent cases

  Find what total factory overhead applied during september

What is the total factory overhead applied during September? September of the current year. Job A was completed during September, and Job B was started.

  Compute equivalent units for materials and conversion cost

Rade Company manufactures a product that passes through two processes. Prepare a physical flow schedule. Compute equivalent units for materials and for conversion cost.

  How many units of each model should pappy produce

Maximum unit sales in a quarter that Pappy's can achieve is 129,500 units of each product. How many units of each model should Pappy's produce in a quarter

  Using the direct method of presenting cash flows

Using the direct method of presenting cash flows from operating activities, prepare a Statement of Cash Flows in accordance with AASB 107 for the year ended 30 June 2012, including a reconciliation of cash flows arising from operating activities a..

  Compute the amount of underapplied or overapplied overhead

Compute the amount of underapplied or overapplied overhead as of January 31 and transfer it to the Cost of Goods Sold account.

  Depreciation expense using the units-of-production method

Determine the annual depreciation expense using the units-of-production method and prepare the journal entry to record the expense.

  Compute direct materials quantity variances for june

During the month, it used 20,200 meters of vinyl material. The total cost of the material was $19,796. Compute the direct materials price and direct materials quantity variances for June.

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!

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