Determine total compensation cost pertaining to the options

Assignment Help Financial Accounting
Reference no: EM13746805

Plans to its employees. Under its executive stock option plan, the company granted options on January 1, 2013, that permit executives to acquire 4 million of the company’s $1 par common shares within the next five years, but not before December 31, 2014 (the vesting date). The exercise price is the market price of the shares on the date of grant, $14 per share. The fair value of the 4 million options, estimated by an appropriate option pricing model, is $3 per option. No forfeitures are anticipated. Ignore taxes.


1. Determine the total compensation cost pertaining to the options.

2. Prepare the appropriate journal entry to record the award of options on January 1, 2013.

3. Prepare the appropriate journal entry to record compensation expense on December 31, 2013.

4. Prepare the appropriate journal entry to record compensation expense on December 31, 2014.

Reference no: EM13746805

Describe nature of the accounting judgment made by company

Describe the nature of the accounting judgment made by the company regarding the residual value of the cars it leases. How would those judgments affect the auditor's assessmen

Determine the cause of underapplied or overapplied overhead

Determine the cause of the underapplied or overapplied overhead for the year by computing the variable overhead rate and efficiency variances and the fixed overhead budget a

Understanding the management assertion

1.Understanding the management assertions related to a speci?c control is an important factor in preparing the tests of controls. Using the assertions provided below, select t

Maturity value-number of interest periods over life of bond

Sunland Inc. has issued three types of debt on January 1, 2017, the start of the company’s fiscal year. (a) $12 million, 12-year, 13% unsecured bonds, interest payable quarter

Evaluate the three proposals for expansion

Santana Rey created Business Solutions on October 1, 2011. The company has been successful and Santana plans to expand her business. She believes that an additional $86,000

Content of comprehensive annual financial report

Outline and Minimum Content of a CAFR Provide an outline for the minimum content of a comprehensive annual financial report (CAFR). Include in your outline only the major cont

Microcomputers are upgraded

The Tingey Company has 500 obsolete microcomputers that are carried in inventory at a total cost of $720,000. If these microcomputers are upgraded at a total cost of $140,000,

Financing leases with unguaranteed residual value

Steven Truck Company has been an 80%-owned subsidiary of Paulz Heavy Equipment since January 1, 2013, when Paulz acquired 128,000 shares of Steven common stock for $832,000, a


Write a Review

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