User Account

All Pages

Determine the total compensation cost pertaining to options

Assignment Help Accounting Basics
Reference no: EM132794406

Question - Olde Corporation provides an executive stock option plan. Under the plan, the company granted options on January 1, 2021, that permit executives to acquire 2 million of the company's $1 par value common shares within the next five years, but not before December 31, 2022 (the vesting date). The exercise price is the market price of the shares on the date of the grant, $14 per share. The fair value of the options, estimated by an appropriate option pricing model, is $2 per option. No forfeitures are anticipated. Ignore taxes.

Required -

(1) Determine the total compensation cost pertaining to the options, assuming the fair value approach has been selected.

(2) Prepare the appropriate journal entry to record the award of the options on January 1, 2021.

(3) Prepare the journal entry to record compensation expense on December 31, 2021.

(4) Prepare the journal entry to record compensation expense on December 31, 2022.

Reference no: EM132794406

Questions Cloud

Relationship between bond prices and interest rates : In need help with these questions why is there a market for bonds? Why do some financial analysts treat preferred stock as a special type of bond rather than eq
What is the impact of the stereotypes : Consult In Whose Honor? Provide an analysis of the arguments for and against these mascots. What do these positionings reflect in relation to the legacy.
Calculate david taxable income assuming is self-supporting : David, a single 18-year old taxpayer, Calculate David's taxable income assuming he is (a) self-supporting and (b) a dependent of his parents.
What is the daily earnings at risk of bond portfolio : The maximum potential adverse move in yields is estimated at 20 basis points. What is the daily earnings at risk (DEAR) of this bond portfolio?
Determine the total compensation cost pertaining to options : Determine the total compensation cost pertaining to the options, assuming the fair value approach has been selected
How turner thesis and perceived end of the frontier effected : During and throughout the 19th century the frontier and its expansion played a significant role in the shaping and reshaping of American identity.
What is the number of t-bond futures contracts : What is the number of T-bond futures contracts necessary to hedge the balance sheet if the duration of the deliverable bonds is 8 years, the current price
What is the denominator of basic eps for the year : What is the denominator of Basic EPS for the year? During the year, the company declared and paid the standard dividend on the preferred stock.
Compute the cost of good manufactured for october : Compute the Cost of Good Manufactured for October. Overhead is applied at a rate of 50% of Direct Labor Cost. ACTUAL Overhead incurred in October

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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