A supervisory employee is a recipient of a stock option which vested during the year. The following data pertains to the exercise of the optlon and its subsequent sale by the employee: Value of stocks at vesting date P45,000 Exercise price of option 30,000 Selling price of stocks 50,000 How much shall be the supplemental compensation of the employee which will be added to his regular compensation and will be subject to the regular income tax? O Zero O 5,000 O 15,000 O 20,000

A supervisory employee is a recipient of a stock option which vested during the year. The following data pertains to the exercise of the optlon and its subsequent sale by the employee: Value of stocks at vesting date P45,000 Exercise price of option 30,000 Selling price of stocks 50,000 How much shall be the supplemental compensation of the employee which will be added to his regular compensation and will be subject to the regular income tax? O Zero O 5,000 O 15,000 O 20,000

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter15: Shareholders’ Equity: Capital Contributions And Distributions

Section: Chapter Questions

Problem 30P

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A supervisory employee is a recipient of a stock option which vested during the year. The following data pertains to the exercise of the option and its subsequent sale by the employee: Value of stocks at vesting date P45,000 Exercise price of option 30,000 Selling price of stocks 50,000 How much shall be the supplemental compensation of the employee which will be added to his regular compensation and will be subject to the regular income tax?
On December 1, 2021, the general ledger balance of Dolphin Inc.'s stock investment portfolio, which is classified as fair value through net income (FV-NI) is $284,900. On December 31, the controller determines that the fair value of this portfolio should be $312,600. The adjusting entry for the portfolio will include: Question 10 options: DR FV-NI investments $27,700 CR Cash FV-NI investments $27,700 CR FV-NI investments $27,700 DR Gain on investments $27,700
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value of the stock option is P90 if the exercise price is P180. If the exercise price is the exercise price will be P180. On Jan. 1, 2018, the entity estimated that the fair PROBLEM 8-7 On Jan. 1, 2018, TOMAS COMPANY granted 5,000 common stock options to the CEO, conditional upon the executive's remaining in the entity's employ until the end of 2020. The par value per share is P100 and the exercise price is P240. However, if earnings increase by at least 10% per year over the 3-year period, P240, the fair value of the stock option is P80. The carnings of the company increased over the 3-year period as follows: 2018. .10% 2019.. 2020.. .11% . 3% REQUIRED: Compute the compensation expense for 2018, 2019, and 2020 as a result of the stock options. 2. Prepare journal entries related to the stock options. PROBLEM 8-8 On Jan. 1, 2018, JORGE COMPANY granted 20 stock options to each of the 1,000 employees. Each grant is conditional upon the employee remaining in service for three (3) years.…
Assume that Amazon.com has a stock-option plan for top management. Each stock option represents the right to purchase a share of Amazon $1 par value common stock in the future at a price equal to the fair value of the stock at the date of the grant. Amazon has 5,000 stock options outstanding, which were granted at the beginning of 2020. The following data relate to the option grant. Exercise price for options 1$40 Market price at grant date (January 1, 2020) 1$40 Fair value of options at grant date (January 1, 2020) 1$6 Service period 15 years Instructions a. Prepare the journal entry(ies) for the first year of the stock-option plan. b. Prepare the journal entry(ies) for the first year of the plan assuming that, rather than options, 700 shares of restricted stock were granted at the beginning of 2020. c. Now assume that the market price of Amazon stock on the grant date was $45 per share. Repeat the requirements for (a) and (b). d. Amazon would like to…