What the wilson compensation expense

Assignment Help Financial Accounting
Reference no: EM132943643

Question - Wilson Inc. developed a business strategy that uses stock options as a major compensation incentive for its top executives. On January 1, 2021, 22 million options were granted, each giving the executive owning them the right to acquire five $1 par common shares. The exercise price is the market price on the grant date - $30 per share ($120 per option). Options vest on January 1, 2025. They cannot be exercised before that date and will expire on December 31, 2027. The fair value of the 22 million options, estimated by an appropriate option pricing model, is $41 per option. Ignore income tax. What the Wilson's compensation expense in 2021 for these stock options?

Reference no: EM132943643

Questions Cloud

What is the total amount of business combination revaluation : All debentures issued by Wall Ltd are held by Great Ltd. What is the total amount of Business Combination Revaluation Reserve (BCVR) shown in the group account
What amount of net loss should have been recognized : The accounting records disclosed the data for the year ended December 31, 2009. What amount of net income or loss should have been recognized in 2009?
Calculate the return on ordinary shareholders equity : The directors of the company approved a transfer of $5000 to reserves. Calculate the return on ordinary shareholders equity
Explain how the incident could affect the degree : Explain how this incident could affect the degree to which the FED changes their monetary policy. If there were changes, would you agree with them?
What the wilson compensation expense : The fair value of the 22 million options, estimated by appropriate option pricing model, is $41 per option. What Wilson's compensation expense
Should praha boat make the investment : Development will take four years, Assume the discount rate is 7.5%. Calculate the investment opportunity. Should Praha Boat make the investment?
Create an organized google sheet : Create an organized Google Sheet performing a basic landscape audit of the podcasting industry. You may include industry trends & challenges
Prepare the report for the audit file : Recently, the company has been experiencing poor financial results due to increased competition, Prepare the report for the audit file.
What the beginning inventory must have : A company's income statement showed cost of goods sold was $78,000, purchases was $80,000, What the beginning inventory must have

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!

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