Give me correct answer and explanation.h Current Attempt in ProgressOn January 1, 2020, Headland Corporation granted 5,400 options to executives. Each option entitles the holder to purchase one shareof Headland's $5 par value common stock at $50 per share at any time during the next 5 years. The market price of the stock is $63 pershare on the date of grant. The fair value of the options at the grant date is $152,000. The period of benefit is 2 years.Prepare Headland's journal entries for January 1, 2020, and December 31, 2020 and 2021. (Credit account titles are automaticallyindented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for theamounts.)DateAccount Titles and ExplanationDebitCredit

DateAccount Titles and ExplanationDebitCredit01-01-2020No Entry 12-31-2020Compensation Expense…

Answered: Current Attempt in Progress On January…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 7E

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On January 1, 2019, Phoenix Corporation adopts a performance-based share option plan for 25 executives, with the number of shares based on the yearly increase in sales. At the end of 2019, based on a 10% increase in sales, it expects that each executive will be granted 150 options and that the fair value of an option expected to vest is 15.75. Phoenix expects a turnover rate of 15% over the 3-year service period. Determine the compensation expense for 2019 for this plan.
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On January 1, 2020, Crane Corporation granted 5,200 options to executives. Each option entitles the holder to purchase one share of Crane's $5 par value common stock at $50 per share at any time during the next 5 years. The market price of the stock is $66 per share on the date of grant. The fair value of the options at the grant date is $136,000. The period of benefit is 2 years. Prepare Crane's journal entries for January 1, 2020, and December 31, 2020 and 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
On January 1, 2020, Sandhill Corporation granted 4,700 options to executives. Each option entitles the holder to purchase one share of Sandhill's $5 par value common stock at $50 per share at any time during the next 5 years. The market price of the stock is $63 per share on the date of grant. The fair value of the options at the grant date is $142,000. The period of benefit is 2 years. Prepare Sandhill's journal entries for January 1, 2020, and December 31, 2020 and 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit >
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Settings On May 1, 2021, Roger Rabbit Company adopted a stock-option plan that granted options to key executives to purchase 8,000 shares of the company's $10 par value common stock. The options were granted on January 1, 2022 and were exercisable 2 years after the date of grant if the grantee was still an employee of the company. The options expired 5 years from date of grant. The option price was set at $30, and the fair value option-pricing model determines the total compensation expense to be $189,000. All of the options were exercised during the year 2024: 3,400 on January 3 when the market price was $38, and 4,600 on May 1 when the market price was $42 a share. Prepare journal entry relating to the stock option plan for the year 2023. Assume that the employee performs services equally in 2022 and 2023. O Debit Compensation Expense $94,500; Credit Paid-in Capital-Stock Options $94,500 O Debit Compensation Expense $189,000; Credit Paid-in Capital-Stock Options $189,000 O Debit…
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Fortune Brands granted options on January 1, 2024, that allows the recipient to purchase 15.0 million of the company's $1 par common shares within the next eight years, but not before December 31, 2026 (the vesting date). The exercise price is the market price of the shares on the date of grant, $17 per share. The fair value of the options, estimated by an appropriate option pricing model, is $4 per option. No forfeitures are anticipated. Ignoring taxes, what is the effect on earnings in the year after the options are granted to executives? Note: Round your answer to 1 decimal place. Multiple Choice O $60.0 million $90.0 million $0 $20.0 million
FIU Inc granted 25,000 stock options to its top management team on January 1, 2022. The options vest at the end of 5 years (cliff vesting). The grant-date fair value of each option is $100. No forfeitures are expected to occur. The company is expensing the cost of the options on a straight-line basis over the 5-year period. On January 1, 2023, the fair value of each option is $95. On January 1, 2024, the fair value is $98. On January 1, 2024 the fair value of each option is $96. Determine the amount to be recognized as compensation expense for each of the 5 years under (a) IFRS, and (b) US GAAP.
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On January 1, 2020, ABC Company granted share options to each of the 300 employees working in the Accounting department. The options price is P90 and the par value is P70 per share.The share options vest at the end of a three-year period provided that the employees remain in the entity’s employ and provided the volume of sales will increase by 10% per year.The fair value of each share option on grant date is P35.The share will vest as follows: If the sales increase by 10%, each employee will receive 200 share options; If the sales increase by 15%, each employee will receive 300 share options.· On December 31, 2020, the sales increased by 10%, and no employees have left the entity· On December 31, 2021, sales increased by 15% and no employees have left.On December 31, 2022, the sales increased by 15% and 50 employees left the entityWhat is the share premium upon exercise of the share options on December 31, 2022?

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