User Account

All Pages

What is the impact on Kesslers net income for the year

Assignment Help Accounting Basics
Reference no: EM132531923

Question - On December 31, 2017, Kessler Company granted some of its executives options to purchase 60,000 shares of the company's $10 par common stock at an option price of $100 per share. The options become exercisable on January 1, 2021.

The Black-Scholes option pricing model estimates the options to be worth $480,000. At December 31, 2018, none of the executives had exercised their options. What is the impact on Kessler's net income for the year ended December 31, 2018 as a result of this transaction under the fair value method?

a. $160,000 increase

b. $160,000 decrease

c. $0 decrease

d. $480,000 decrease

Reference no: EM132531923

Questions Cloud

Calculate unreserved fund balance of finfine city at june : ETB 1,115,000, while expenditures and outstanding encumbrances are ETB 1,000,000.Calculate the unreserved fund balance of Finfine City at June 30.
What is the total amount to be charged : Overtime is worked to meet the general requirements of production, What is the total amount to be charged as indirect costs of labour for the week
Business contingency plan and disaster recovery plan : Work Area Recovery Plan is a vital plan that establishes an adequate environment for people to work in the event of a disruptive incident.
Calculate the unreserved fund balance of finfine city : Calculate the unreserved fund balance of Finfine City at June 30. On July 1, 2010 the city of Finfine reported an unreserved fund balance of ETB 80,000.
What is the impact on Kesslers net income for the year : What is the impact on Kessler's net income for the year ended December 31, 2018 as a result of this transaction under the fair value method
How long is the operating cycle : Bradley's has an inventory turnover rate of 7.6, a payables turnover rate of 11.4, and a receivables turnover rate of 12.6. How long is the operating cycle?
What amount of the foregoing revenues should be accounted : Interest earned on investments held for employees' retirement benefits - 100,000. What amount of the foregoing revenues should be accounted
Business contingency plan and disaster recovery plan : You identified an organization that adopts a recovery plan for the disaster recovery and business continuity plan.
Calculate the employee benefit expense for sick leave : Calculate the employee benefit expense for sick leave during the year and the amount that should be recognised as a liability, if any, for sick leave

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