What is the pretax stock compensation, Financial Accounting

Refer to the Consolidated Statements of Shareholders' Equity (pp. 62-63), Consolidated Statements of Cash Flow, including an abstract from Note 2, Cash Flow Information (pp. 61 and 72) and Note 15, Share-Based Awards (pp. 93-96), from the Consolidated Financial Statements of Harley-Davidson (hereafter HOG) 2008 Annual Report.

a) How many stock options were granted under the stock compensation plan (the Plan) in 2008? What is the pretax stock compensation expense recognized by HOG in 2008? Write the journal entry corresponding to recognition of share-based compensation before tax, and any associated tax effect. You may assume that "tax benefit of stock options" in the Consolidated Statements of Shareholders' Equity refers only to compensation expense recognition.

b) Suppose the FASB required recognition of options at grant date as giving rise to an intangible asset at date of grant and the issuance of equity as additional paid-in capital. Refer to this as the "modified FASB rule." Show the accounting entry that relates to the granting of new options in 2008 under this accounting treatment. Assuming the 2008 options vest in 5 years, show the journal entry HOG would record for 2009 compensation expense relating to the 2008 option grants using the modified FASB rule.

c) Show the journal entry corresponding to recognition of stock option exercises in 2008.




Posted Date: 3/26/2013 1:42:49 AM | Location : United States

Related Discussions:- What is the pretax stock compensation, Assignment Help, Ask Question on What is the pretax stock compensation, Get Answer, Expert's Help, What is the pretax stock compensation Discussions

Write discussion on What is the pretax stock compensation
Your posts are moderated
Related Questions
Question : Financial analysts will use ratios to compare performance of companies in the same industry. Lenders will frequently use ratio analysis to help them decide whethe

You would like to start investing in the bond markets and your investment horizon is two years.  In view of the current extremely low interest rate environment, you expect the U.S.

Gomez incurred $350,000 of research and development costs to develop a product for which a patent was granted on January 2, 2008. Legal fees and other costs associated with the reg

VK Ltd a multi-product Company, furnishes you the following data relating to the year 2000. First Half of the year Second Half of the year Sales Rs. 4

During 2012, Kimmel Co. incurred average accumulated expenditures of $600,000 during construction of assets that qualified for capitalization of interest. The only debt outstanding

Generally Accepted Accounting Principles (GAAP) are guidelines for companies to follow as tehy prepare and issue financial statements. Let's start by getting an understanding of wh

Problem 1 Seven years ago a semi-annual coupon bond with a 10% coupon rate, $1,000 face value and 15 years to maturity was issued by Corn Inc.. Teddy bought this bond two years ag

a. Explain a major factor which led to the introduction of International Financial Reporting Standards (IFRS). b. Explain how users of financial information benefit from IFRS.

Effect of receiving order The consequences of the making of the receiving order are: The debtor retains ownership, but loses possession and control of his property; Th

does closing balance of cash flow statement equals to cash in balance sheet