What should be the amount of compensation expense

Assignment Help Accounting Basics
Reference no: EM132280329

Question - On June 30, 2015, Sheffield Corp. granted compensatory stock options for 75100 shares of its $20 par value common stock to certain of its key employees. The market price of the common stock on that date was $36 per share and the option price was $30. The Black-Scholes option pricing model determines total compensation expense to be $896000. The options are exercisable beginning January 1, 2018, provided those key employees are still in Sheffield's employ at the time the options are exercised. The options expire on June 30, 2019.

On January 4, 2018, when the market price of the stock was $42 per share, all 75100 options were exercised. What should be the amount of compensation expense recorded by Sheffield Corp. for the calendar year 2017 using the fair value method?

$358400.

$0.

$896000.

$448000.

Reference no: EM132280329

Fundamentals of financial accounting

Using Landry's Restaurants, Inc. 2003 Annual Report located in Appendix A of the text, Fundamentals of Financial Accounting, prepare a 1,050-1,750-word paper in which you an

Analyze inventory valuation method discussed in the textbook

Analyze inventory valuation methods discussed in the textbook. Based on your analysis, recommend the most accurate valuation method that reflects current economic conditions

Estimated cost for a month

Using the high-low method, find variable cost per unit, total fixed costs, and the total cost equation and what is the estimated cost for a month in which 22,000 issues are pu

Preparing the partners capital statement

Debauge Co. had beginning capital balances on January 1, 2008, as follows: Nick Foley $30,000 and Tom Wenger $25,000. During the year, drawings were Foley $15,000 and Wenger

A fixed salary to a sales commission

Currently the sales clerks receive a salary of $17,000 per month in Store Q. A proposal has been made to change from a fixed salary to a sales commission of 5%. Assume that th

Unfavorable variances as a negative number

What is Sprinkle and Co's total materials cost variance (i.e., the variance due to purchase PLUS the variance due to use) for the month of March? Enter favorable variances

Determining the profit margin

Stockholders recently voted in a new management team that has promised to lower costs and get the return on equity up to 15%. What profit margin would LeCompte need in order

Prepare a return on investment analysis for regional manager

prepare a return on investment analysis for the regional manager of Out-and-In Burgers. This growing chain is trying to decide which outlet of two alternatives to open. The fi

Reviews

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