Concord Company establishes a stock-appreciation rights program that entitles its new president Ben Davis to receive cash for the difference between the market price of the stock and a pre-established price of $33 (also market price) on December 31, 2021, on 37,700 SARs. The date of grant is December 31, 2021, and the required employment (service) period is 4 years. President Davis exercises all of the SARS in 2027. The fair value of the SARS is estimated to be $6 per SAR on December 31, 2022; $10 on December 31, 2023; $14 on December 31, 2024; $6 on December 31, 2025; and $17 on December 31, 2026. (a) Prepare a 5-year (2022-2026) schedule of compensation expense pertaining to the 37,700 SARS granted president Davis. (If the compensation decreases from prior year enter the amount as a negative number in the table eg.-25,000 or (25,000)) Cumulative Compensation Date 12/31/22 $ 12/31/23 12/31/24 12/31/25 Fair Value Recognizable Percentage Accrued % % $ Compens

Concord Company establishes a stock-appreciation rights program that entitles its new president Ben Davis to receive cash for the difference between the market price of the stock and a pre-established price of $33 (also market price) on December 31, 2021, on 37,700 SARs. The date of grant is December 31, 2021, and the required employment (service) period is 4 years. President Davis exercises all of the SARS in 2027. The fair value of the SARS is estimated to be $6 per SAR on December 31, 2022; $10 on December 31, 2023; $14 on December 31, 2024; $6 on December 31, 2025; and $17 on December 31, 2026. (a) Prepare a 5-year (2022-2026) schedule of compensation expense pertaining to the 37,700 SARS granted president Davis. (If the compensation decreases from prior year enter the amount as a negative number in the table eg.-25,000 or (25,000)) Cumulative Compensation Date 12/31/22 $ 12/31/23 12/31/24 12/31/25 Fair Value Recognizable Percentage Accrued % % $ Compens

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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Garth Corporation is a publicly traded corporation with a December 31st fiscal year end. On January 20, 2021 Garth Corporation made the following announcement: Garth Corporation has appointed Ally Garth as CEO effective March 1, 2021. In connection with her new position, Ms. Garth will receive an annual base salary of $625,000, will be eligible for a pro-rated annual cash incentive under the Executive Officer Incentive Plan with a target incentive opportunity of 100% of base salary, and will be granted stock-based awards. What document would Garth Corporation file with the SEC to share this information? Question 35 options: a) 10-K b) Proxy c) 8-K
On January 1, 2019, Pepin Company adopts a compensatory share option plan for its 50 executives. The plan allows each executive to purchase 200 shares of its $2 par common stock for $30 per share after completing a 3-year service period. Pepin estimates the value of each option to be $14 on the grant date, and the company expects that 15% of the options will be forfeited and uses this rate in its compensation cost calculations in 2019. At the end of 2021, Pepin determined that the actual turnover was 7 executives for the entire service period. On January 6, 2022, 8 executives exercise their options. Required: 1. Prepare a schedule of Pepin’s compensation computations for its compensatory share option plan for 2019 through 2021. 2. Prepare Pepin’s journal entries for 2019 through 2022 in regard to this plan.
On November 1, 2020, Sarasota Company adopted a stock-option plan that granted options to key executives to purchase 37,500 shares of the company’s $10 par value common stock. The options were granted on January 2, 2021, and were exercisable 2 years after the date of grant if the grantee was still an employee of the company. The options expired 6 years from date of grant. The option price was set at $40, and the fair value option-pricing model determines the total compensation expense to be $562,500.All of the options were exercised during the year 2023: 25,000 on January 3 when the market price was $66, and 12,500 on May 1 when the market price was $75 a share.Prepare journal entries relating to the stock option plan for the years 2021, 2022, and 2023. Assume that the employee performs services equally in 2022 and 2023. (
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