User Account

All Pages

Discuss trent should recognize compensation expense

Assignment Help Accounting Basics
Reference no: EM131790748

On January 1, 2018, Trent Company granted Dick Williams, an employee, an option to buy 400 shares of Trent Co. stock for $30 per share, the option exercisable for 5 years from date of grant. Using a fair value option pricing model, total compensation expense is determined to be $5,400. Williams exercised his option on September 1, 2018, and sold his 400 shares on December 1, 2018. Quoted market prices of Trent Co. stock during 2018 were:

January 1

$30 per share

September 1

$36 per share

December 1

$40 per share

The service period is for two years beginning January 1, 2018. As a result of the option granted to Williams, using the fair value method, Trent should recognize compensation expense for 2018 on its books in the amount of

$0.

$2,700.

$6,000.

$5,400.

Reference no: EM131790748

Questions Cloud

What the fed should do in order to avoid a change in output : In this question we will analyze the following statement, and show what would happen if the advice given was followed by the Fed.
Explain reasons investors should be concerned about earnings : research and explain the reasons investors should be concerned about earnings per share and growth
How many customers should we expect for our sample : According to a leading juice company, mixed fruit juice makes up 35% of the total sales. Suppose we examine 200 random customers.
Defining the customers overall satisfaction level : Your job is to describe how they might find out their customers' overall satisfaction level. Write a few sentences going through the process.
Discuss trent should recognize compensation expense : As a result of the option granted to Williams, using the fair value method, Trent should recognize compensation expense
Compute net cash provided or used by investing activities : Exercise - Cash Provided by Operating, Investing, and Financing Activities. Compute net cash provided or used by investing activities
Compute the deferred income tax amount reported : Compute the deferred income tax amount reported on the balance sheet for Compute the deferred income tax amount reported on the balance sheet
Determine the amount to be reported as the cost of the land : Determine the amount to be reported as the cost of the land. For each cost not used in part (a), indicate the account to be debited.
Find the size of the farm surplus : Suppose that the government wishes to support farm income and thus sets a price floor of $1.50/bushel. Find the size of the farm surplus.

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