At January 1, 2021, the company had issued 40,000 executive stock options permitting executives to buy 40,000 shares of stock for $25. The vesting schedule is 20% the first year, 30% the second year, and 50% the third year (graded-vesting). The fair value of the options is estimated as follows: Vesting Date Amount Vesting Fair Value per Option Dec. 31, 2021 20 % 2$ Dec. 31, 2022 30 % %24 8 Dec. 31, 2023 50 % $ 12 What is the compensation expense related to the options to be recorded in 2021? O $48,000. $96,000. O $128,000. O $184,000.

At January 1, 2021, the company had issued 40,000 executive stock options permitting executives to buy 40,000 shares of stock for $25. The vesting schedule is 20% the first year, 30% the second year, and 50% the third year (graded-vesting). The fair value of the options is estimated as follows: Vesting Date Amount Vesting Fair Value per Option Dec. 31, 2021 20 % 2$ Dec. 31, 2022 30 % %24 8 Dec. 31, 2023 50 % $ 12 What is the compensation expense related to the options to be recorded in 2021? O $48,000. $96,000. O $128,000. O $184,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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28. On December 31, 2020, Nyza Company issued 200,000 shares of P100 par, 10% cumulative preferred stock for P25,000,000. One detachable warrant was attached to each preferred share issued. Each warrant gives the holder the right to purchase one common share with a P50 par value for P100. The market value of the warrant after the preferred stock was issued was P15. The warrants expire on December 31, 2021. On July 1, 2021, all of the warrants were exercised. On this date, the market prices were P120 for the common and P20 for the warrant. As a result of exercising the warrants, determine the net increase to stockholders’ equity.
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Company B had net income for the fiscal year ended December 31, 2020 of $5 million. There were 500,000 common shares outstanding throughout 2020. The average market price of the common shares for the entire fiscal year was $50. Company tax rate was 25% for 2020. Company B had the following potential common shares outstanding during 2020: • Options to buy 100,000 common shares at $45 per share. • 100,000 convertible preferred shares entitled to a cumulative dividend of $10 per share. Each preferred share is convertible into 1.5 common shares. • 4% convertible bonds with a principal amount of $30 million, issued at par. Each $1,000 bond is convertible into 25 common shares. For the fiscal year ended December 31, 2020, what is the basic and diluted EPS using IFRS?
During 2021 if Anya Corporation has issued common stock equal to 30% ofthe outstanding common stock at a price of 120% of the par value, the number of shares issued and outstanding would be________ and the total paid-in capital would be $_________
Convertible Preferred Stock, Convertible Bonds, and EPS Francis Company has 24,000 shares of common stock outstanding at the beginning of 2019. Francis issued 3,000 additional shares on May 1 and 2,000 additional shares on September 30. It also has two convertible securities outstanding at the end of 2019. These are: Convertible preferred stock: 2,500 shares of 8.5%, $50 par, preferred stock were issued on January 2, 2016, for $60 per share. Each share of preferred stock is convertible into 3 shares of common stock. Current dividends have been declared and paid. To date, no preferred stock has been converted. Convertible bonds: Bonds with a face value of $250,000 and an interest rate of 5.5% were issued at par in 2018. Each $1,000 bond is convertible into 20 shares of common stock. To date, no bonds have been converted. Francis earned net income of $72,500 during 2019. The income tax rate is 30%. Required: a. Assume the same facts as above except that net income included a loss…
Convertible Preferred Stock, Convertible Bonds, and EPS Francis Company has 12,000 shares of common stock outstanding at the beginning of 2019. Francis issued 1,500 additional shares on May 1 and 1,000 additional shares on September 30. It also has two convertible securities outstanding at the end of 2019. These are: Convertible preferred stock: 1,250 shares of 9.0%, $50 par, preferred stock were issued on January 2, 2016, for $60 per share. Each share of preferred stock is convertible into 3 shares of common stock. Current dividends have been declared and paid. To date, no preferred stock has been converted. Convertible bonds: Bonds with a face value of $125,000 and an interest rate of 6.0% were issued at par in 2018. Each $1,000 bond is convertible into 25 shares of common stock. To date, no bonds have been converted. Francis earned net income of $55,000 during 2019. The income tax rate is 30%. Required: 1. Compute the number of shares of common stock that Francis should use…
P16.3 Brondon Corp. purchased a put option on Mykia common shares on July 7, 2023, for $480. The put option is for 350 shares, and the strike price is $50. The option expires on January 31, 2024. The following data are available with respect to the put option: Date Sept. 30, 2023 Dec. 31, 2023 Jan. 31, 2024 Instructions Prepare the journal entries for Brondon for the following dates: July 7, 2023: Invests in put option on Mykia shares. 1 September 30, 2023: Brondon prepares financial statements. 1. December 31, 2023: Brondon prepares financial statements. January 31, 2024: Put option expires. Fair Value of Option $250 100 O Market Price of Mykia Shares $56 per share $58 per share $62 per share
Current Attempt in Progress\\nFlint Inc. issued $3,780,000 of 9%,10 -year convertible bonds on June 1,2020 , at 98 plus accrued interest. The bonds were dated April 1,2020 , with interest payable April 1 and October 1. Bond discount is amortized semiannually on a straight-line basis.\\nOn April 1, 2021, $1,417,500 of these bonds were converted into 30,000 shares of $19 par value common stock. Accrued interest was paid in cash at the time of conversion.\\n(a) Prepare the entry to record the interest expense at 5 ctober 1, 2020. Assume that accrued interest payable was credited when the bonds were issued.\\n(b) Prepare the entry to record the conversion on April 1, 2021. (Book value method is used.) Assume that the entry to record amortization of the bond discount and interest payment has been made.
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