What recognize compensation expense under the fair value

Assignment Help Accounting Basics
Reference no: EM132842219

On January 1, 2017, Vaughn Manufacturing granted an employee an option to purchase 15000 shares of Vaughn's $5 par value common stock at $20 per share. The Black-Scholes option pricing model determines total compensation expense to be $349000. The option became exercisable on December 31, 2018, after the employee completed two years of service.

The market prices of Vaughn's stock were as follows:

January 1, 2017 $30

December 31, 2018 50

Problem 1: For 2018, should recognize compensation expense under the fair value method of

Option 1: $225000.

Option 2: $174500.

Option 3: $0.

Option 4: $75000.

Reference no: EM132842219

Questions Cloud

What the goodwill or gain on bargain purchase would be : As per the Acquisition Analysis prepared on 01/01/2020, the Goodwill or gain on bargain purchase would be? Ordinary share capital $400 000.
What should be the amount of compensation expense : Using the fair value method, what should be the amount of compensation expense recorded by Bramble Corp. for these options on December 31, 2018?
Summarize news item highlighting linkages to relating issuse : Summarize the news item highlighting linkages to relating issues. Provide a proper reference to the news item, and a link, if available.
What would you expect the ytm to be after the increase : The variable cost associated with producing one water bottle is $6 per unit. The water bottle is sold at price of $22. If the company set a goal of making $11,5
What recognize compensation expense under the fair value : For 2018, should recognize compensation expense under the fair value method of? Vaughn Manufacturing granted an employee an option to purchase 15000 shares.
What are some factors that affected the dupont analysis : Apply three points DuPont Analysis for Sprout Farmers Market's fiscal year 2019 and 2018. What are some factors that affected the DuPont analysis?
Highlighting linkages to relating issues : Summarize the news item highlighting linkages to relating issues. Provide a proper reference to the news item, and a link, if available.
What specific steps would take to identify the fraud and why : Explain what key information would you request to support the analysis and why? What specific steps would you take to identify the fraud and why?
What would you expect the ytm to be after the increase : Company A sells premium water bottles. The fixed costs is 108,472. The variable cost associated with producing one water bottle is $6 per unit.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Compute depreciation expense

Compute depreciation expense for 2019 and 2020 using each of the following methods. Also, compute book value at the end of each year

  Statements about partnership

Which of the following statements about a partnership is true?

  Discuss the company or industry averages

How does this information compare to the company or industry averages, or the company's past performance

  Set out and close off the ledger accounts

IKarnatic Ltd. has issued £500,000 of Debentures at par on the condition that it opens up and invests a Sinking Fund. During the life of the fund the annual.

  What is the amount of dividends declared

On October 15, the corporation's board of directors declared a cash dividend of $0.50 per share payable on November 15 to stockholders of record on November 1. What is the amount of dividends declared?

  What was channel ones fixed manufacturing overhead budget

Channel One Industries uses a standard costing system to apply manufacturing costs. What was Channel One's fixed manufacturing overhead budget variance in May?

  Prepare the statement of cash flows

Financial statements for E-Perform, Inc. follow: Prepare the statement of cash flows, using the indirect method

  What amount should lewellings paid in capital excess

What amount should Lewelling's paid-in capital-excess of par increase as a result of this transaction?

  What impact do these terms have on the ending cash balance

Analyze Whittworth's Hardware cash budget created in 1). What are the A/R terms? What are the A/P terms? What impact do these terms have on the ending cash balance?

  Prepare adjusting journal entries to recognize stock options

The options expire on January 1, 2022. Prepare the adjusting journal entries, if any, to recognize stock options in 2020

  Allocate unamortized discount or premiums

On January 1, 2006, Jamona Corp. purchased 12% bonds, having a maturity value of $300,000, for $322,744.44 with 10% yield for bondholders which are dated January 1, 2006 and will mature January 1, 2011, the interest will be received December 31 ea..

  What limitations exist regarding passive activities

What limitations exist regarding passive activities? How is partnership activity, as well as partner's individual activity reported

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