Refering the above question suppose that the options are

Assignment Help Accounting Basics
Reference no: EM13573017

Under its executive stock option plan, National Corporation granted options on January 1, 2011, that permit executives to purchase 12 million of the company's $1 par common shares within the next six years, but not before December 31, 2013. The exercise price is the market price of the shares on the date of grant, $17 per share. The fair value of the options, estimated by an appropriate option pricing model, is $5 per option. No forfeitures are anticipated. Ignoring taxes, what is the total compensation cost pertaining to the stock options? What is the effect on earnings in the year after the options are granted to executives?

Refering the the above question, suppose that the options are exercised on April 3, 2014, when the market price is $19 per share. Ignoring taxes, what journal entry will National record?

Reference no: EM13573017

Questions Cloud

What is a eurodollar if a french citizen deposits 10000 in : what is a eurodollar? if a french citizen deposits 10000 in chase bank in new york have eurodollars been created? what
Your evaluation of peachtree complete accounting will be : your evaluation of peachtree complete accounting will be based upon your experience. you will use screen prints to
What is the expected rate of return ie the before-tax : niendorf incorporated needs to raise 25 million to construct production facilities for a new type of usb memory device.
Dring the yr he received dividendsof 145 per share the : last year mike bought 100 shares of dallas corpoartion commonstcok for 53 per share. during the year he received
Refering the above question suppose that the options are : under its executive stock option plan national corporation granted options on january 1 2011 that permit executives to
What was the flexible budget variance a positive number : the following information is for x companybudgeted proudction10200 unitsactual production11300 unitsbudgeted
X company prepares annual financial statements on september : x company prepares annual financial statements. on september 1 2014 x company paid 63000 in advance for a two-year
Write a short essay to help determine your ability to write : write a short essay to help determine your ability to write clearly and correctly you are asked to write a
What options are available if the initial break-even : 1. explain why calculating a break-even point should be the first step for any potential business.2. what options are

Reviews

Write a Review

Accounting Basics Questions & Answers

  Compute the break-even point in dollars and in units

In August, Gold Company sold 770 units of their only product. For the month, fixed costs were $10,400, variable costs were 57% of sales, and the average sales price was $62.

  Ramirez company received their first electric bill in the

1. ramirez company received their first electric bill in the amount of 60 which will be paid next month. how will this

  Soap company issued 200000 of 8 5-year bonds on january 1

soap company issued 200000 of 8 5-year bonds on january 1 20x6. the discount on issuance was 12000. bond interest is

  Determine the value of bonds

The State of Adaven issued $50 million of perpetual bonds in 1990. The bonds were issued in $100 denominations with an annual coupon interest rate of 5%. Determine the value of these bonds today to an investor who requires a 10% return on his inve..

  Star services inc a manufacturer of telescopes began

star services inc. a manufacturer of telescopes began operations on october 1 of the current year. during this time the

  Compute the following ratios for sepracor

Sepracor, Inc., a drug company, reported the following information. The company prepares its financial statements in accordance with GAAP.

  Determine amount of raw materials to be purchased

If 3,500,000 finished units were made, determine amount of raw materials to be purchased.

  Income derived from investment

On comparative income statements issued in 2010 for the years of 2007, 2008, and 2009, what would Smith report as its income derived from this investment in Barker?

  Determine a petty cash fund list two ways a business would

determine a petty cash fund? list two ways a business would maintain controls over petty cash? list two procedures you

  Earnings per share for frantic fast foods

Frantic Fast Foods had earnings after taxes of 390000.00 in year 2009 with 300000.00 shares outstanding. On January 1, 2010 the firm issued 25000 new shares. Because of the proceeds from these new shares and other operating improvements, earnings ..

  Search the internet for information on the mnc

search the internet for information on a mnc publicly-traded company. download the annual report for the most recent

  Assume that the investment generates equivalent annual cash

the happy day care center is considering an investment that will require an initial cash coutlay of 300000 to purchase

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