What xyz should recognize compensation expense

Assignment Help Financial Accounting
Reference no: EM132495651

On January 1, 2018, XYZ Company granted Zack Williamson, an employee, an option to buy 400 shares of XYZ 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. Williamson exercised his option on September 1, 2018, and sold his 400 shares on December 1, 2018.

Quoted market prices of XYZ Co. stock during 2018 were:

January 1 $30 per share

September 1 $36 per share

December 1 $40 per share

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

Reference no: EM132495651

Questions Cloud

Explain what a liability is : Explain what a liability is and give at least 2 examples of both current and long-term liabilities. How does a company determine what financial stability might
How many shares remain after the repurchase : The proceeds to repurchase stock. How many shares remain after the repurchase, and what is the stock price per share immediately after the repurchase?
Busi 355 introduction to income tax assignment : BUSI 355 Introduction to Income Tax Assignment help and solution, The University of British Columbia - assessment writing service
Determining the confidence interval for the true mean : Revenue in a cosmetics company comes mostly from their hair products' sales. The marketing department wants to estimate the proportion of customers
What xyz should recognize compensation expense : As a result of the option granted to Williamson, using the fair value method, XYZ should recognize compensation expense for 2018 on its books in the amount of
State the null and alternative hypothesis : A pilot study was conducted to evaluate the effectiveness of pain alleviation in patients with facial shingles. 24 patients were randomly assigned
What is the stock price per share immediately : T-bills to hold until it makes the stock repurchase. What is the stock price per share immediately after issuing the debt but prior to the repurchase?
What was the average annual increase : Assuming the increase in sales was consistent year over year, what was the average annual increase (%) from 1990 - 2010 of cans sold?
What amount would need to invest to have one year : If you are able to earn an 8% rate of return, what amount would you need to invest to have $30,000 one year from now? (Round to the nearest dollar.)

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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