Solution-What is the effect on the total equity at the end

What is the effect on the total equity at the end

Assignment Help Accounting Basics

Reference no: EM132530150

Question - Now FASB required that all employee stock options should be expensed on income statement. On Jan. 2005, AA company granted total $100,000 (fair value) of stock options to the employee. The exercise price is equal to the market price at the grant time. The employees cannot exercise the options until 2007. According to the new requirement, the company should record an expense $50,000 for 2005 and $50,000 for 2006. During 2008, all options are exercised. What is the effect on the total equity at the end of 2006?

Reference no: EM132530150

Questions Cloud

Identify the two key assertions at risk : Identify the two key assertions at risk for each of the two key account balances Cash and account receivable. Justify your selection of these assertions

What criteria or needs determine the type of health program : What criteria or needs determine the type of health program or initiative that will be implemented? How might health care administrators identify the needs.

How would respond to the policy : Assume that the president of Freeman Industries Inc. As a public shareholder of this company, how would you respond to this policy?

Do you think that he right about the ability to suffer : Do you think that he's right about the ability to suffer as what we ought to look at when we're thinking about whether someone/something counts morally?

What is the effect on the total equity at the end : On Jan. 2005, AA company granted total $100,000 (fair value) of stock options to the employee. What is the effect on the total equity at the end

Perform differential analysis : Perform differential analysis. Assume making the rims internally is Alternative 1, and buying the rims from an outside manufacturer is Alternative

Revise your attitude toward certain behavior : Ponder the fact that psychological time is an extreme variable and review the boxed material, "What Time Is It?"). Have you felt the impact of the fact that

Prepare the journal entry to record the redemption on July : The balance sheet for Sunland Consulting reports the following information on July 1, 2020. Prepare the journal entry to record the redemption on July 1, 2020

Morality undermine one claims : 1) Does accepting a relativistic position with regard to morality undermine one's claims? Why or why not?

User Account

All Pages

What is the effect on the total equity at the end

Reference no: EM132530150

Reference no: EM132530150

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT