User Account

All Pages

What should be the amount of compensation expense

Assignment Help Financial Accounting
Reference no: EM132907415

Question - On June 30, 2021, Bonita Industries granted compensatory stock options for 26000 shares of its $24 par value common stock to certain of its key employees. The market price of the common stock on that date was $32 per share and the option price was $29. Using a fair value option pricing model, total compensation expense is determined to be $95000. The options are exercisable beginning January 1, 2023, providing those key employees are still in the employ of the company at the time the options are exercised. The options expire on June 30, 2024.

On January 4, 2023, when the market price of the stock was $37 per share, all options for the 26000 shares were exercised. The service period is for two years beginning January 1, 2021. Using the fair value method, what should be the amount of compensation expense recorded by Bonita Industries for these options on December 31, 2021?

Reference no: EM132907415

Questions Cloud

Irish hospitals suffered ransomware attack : Irish hospitals suffered a ransomware attack recently in May 2021. What effect did it have on the provision of health care services?
What is the maximum amount of employment expenses : What is the maximum amount of employment expenses that Ms. Ekert can claim as a commissioned salesperson for 2020? Show and label all calculations
Evolution of cryptography : Cryptography is designed to turn information into a format that is difficult to understand in an effort to keep information confidential.
What is desire drd for the current year : Desire Corporation received dividends from DuBois, Inc. of $60,000. What is Desire's DRD for the current year
What should be the amount of compensation expense : The service period is for two years beginning January 1, 2021. Using the fair value method, what should be the amount of compensation expense
Differences between high and moderate FedRAMP ratings : You covered Azure identity management, policy, and compliance. Explain the differences between high and moderate FedRAMP ratings.
What the entry to record the redemption : The carrying value of the bonds at the redemption date is $731500. What the entry to record the redemption
Arise with respect to three-dimensionalplots : What are the arrangement issues that arise with respect to three-dimensionalplots?
What is the equivalent material cost per unit : Selling expenses, $6,900; and administrative expenses, $15,200. If 7,750 equivalent units are produced, what is the equivalent material cost per unit

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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