Reference no: EM131318304
On December 31, 2011, Farley Camera, Inc., issues 5,000 stock appreciation rights to its president to entitle her to receive cash for the difference between the market price of its stock and a preestablished price of $20.
The date of exercise is December 31, 2012, and the required service period is the entire three years.
The market price fluctuates as follows:
12/31/12- $23.00;
12/31/13- $21.00;
12/31/14- $26.00.
Farley Camera accrued the following compensation expense:
2012 $15,000
2013 $(10,000)
2014 $25,000
Required
a. What is the executive's main advantage of receiving stock appreciation rights over stock options?
b. In 2012, a $15,000 expense is recorded. What is the offsetting account?
c. What is the financial impact on the company of the exercise of the stock appreciation rights in 2014? How does this impact affect financial statement analysis?
|
Describe the diagnosis and staging of cancer
: Describe the diagnosis and staging of cancer.Describe at least three complications of cancer, the side effects of treatment, and methods to lessen physical and psychological effects.
|
|
Prepare presentation of a case study of a shipping company
: GBCA520 Shipping Business Management Assignment. Prepare a critical presentation of a case study of a shipping company in Product Carriers called "Eletson Corporation"(www.eletson.com). (2500 words excluding, appendices, figures and tables)
|
|
Examine the ceos personal and organizational values
: Examine the CEO's personal and organizational values. Evaluate how the values of the CEO are likely to influence ethical behavior within the organization.
|
|
Describe the dental implications of patients on anti-anginal
: List the potential side effects of long-term use of antihypertensive medications on oral health of patients and their dental management.Describe the potential interaction between anti-arrhythmia agents and the commonly prescribed medications in denta..
|
|
What is the financial impact on the company
: What is the financial impact on the company of the exercise of the stock appreciation rights in 2014? How does this impact affect financial statement analysis?
|
|
What is the npv of the project
: Assume the new equipment will generate before-tax savings of $281,000 over the four years. The new equipment will result in additonal depreciation of $56,000 per year. If the cost of capital is 20% and the tax rate is 30%, what is the NPV of the p..
|
|
What is the relevant cash flow in year 2
: The new machine is expected to reduce labor costs by $153,000 per year for 5 years. Depreciation on the new machine is $124,000 compared with $86,000 on the old machine. In addition, inventory will increase from $250,000 to $280,000 until the end ..
|
|
Create an argument that growth in the european market
: Create an argument that growth in the European market can have a significant impact on current earnings and profit for Amazon.com. Provide support for your rationale.
|
|
Who should pick the preload for a safety-related joint
: Who should pick the preload for a safety-related joint? In most situations what is your best guide to a correct torque? Why should you keep records of the torques and procedures used in your applications?
|