DASHER Company adopted the following share compensation plan for its employees: Vesting condition o Employees must remain in the entity's employ during the vesting period. Shares will vest as follows: o End of 2019, if earnings increase by at least 18% o End of 2020, if earnings over two years increase by average of at least 13% o End of 2021, if earnings over three years increase by average of at least 10% Assumptions o 100 share options granted to each of the 1,000 employees on January 1, 2019 (total shares - 100,000) o FV of each share option is $30. Actual and revised estimate of entity's average earnings o End of 2019: actual - 14%, estimated earnings in 2020 - 14% End of 2020: actual - 10%, estimated earnings in 2021 - 6% o End of 2021: actual - 8% o ● Actual and estimate of employees who will leave the company o 2019-60 employees left, additional employees to leave - 70 2020 - 50 employees left, additional employees to leave - 30 2021-40 employees left O O

DASHER Company adopted the following share compensation plan for its employees: Vesting condition o Employees must remain in the entity's employ during the vesting period. Shares will vest as follows: o End of 2019, if earnings increase by at least 18% o End of 2020, if earnings over two years increase by average of at least 13% o End of 2021, if earnings over three years increase by average of at least 10% Assumptions o 100 share options granted to each of the 1,000 employees on January 1, 2019 (total shares - 100,000) o FV of each share option is $30. Actual and revised estimate of entity's average earnings o End of 2019: actual - 14%, estimated earnings in 2020 - 14% End of 2020: actual - 10%, estimated earnings in 2021 - 6% o End of 2021: actual - 8% o ● Actual and estimate of employees who will leave the company o 2019-60 employees left, additional employees to leave - 70 2020 - 50 employees left, additional employees to leave - 30 2021-40 employees left O O

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 7RE: On January 1, 2019, Phoenix Corporation adopts a performance-based share option plan for 25...

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An entity granted a share appreciation right to the Business development manager of the company on January 1, 2019. After a three-year service period, the employee is entitled to receive cash equal to the appreciation in share price over the market value or predetermined price on January 1, 2019. The share appreciation right had the following terms: Service period – January 1, 2019 to December 31, 2021; Number of shares – 30,000 shares; Exercise date – January 1, 2022.F urther, the quoted prices of the entity’s share are: January 1, 2019 – 200. December 31, 2019 – 205. December 31, 2020 – 215 and December 31, 2021 – 230. Choose the letter of correct answer As a result of the share appreciation rights, what amount should be recognized as compensation expense for 2019? a.50,000b.75,000c.150,000d.0 what amount should be reported as compensation expense for 2020? a.450,000b.150,000c.100,000d.50,000 If the share appreciation rights are vested upon the officer or exercisable immediately,…
An entity granted a share appreciation right to the Business development manager of the company on January 1, 2019. After a three-year service period, the employee is entitled to receive cash equal to the appreciation in share price over the market value or predetermined price on January 1, 2019. The share appreciation right had the following terms:Service period – January 1, 2019 to December 31, 2021;Number of shares – 30,000 shares;Exercise date – January 1, 2022.Further, the quoted prices of the entity’s share are: January 1, 2019 – 200. December 31, 2019 – 205. December 31, 2020 – 215 and December 31, 2021 – 230 Using the same information above, what amount should be reported as compensation expense for 2020? *a.450,000b.150,000c.100,000d.50,000
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On January 1, 2021, an entity granted to employees 10,000 share options. On January 1, 2022, the entity granted to employees an additional 20,000 share options. Date January 1, 2021 December 31, 2021 January 1, 2022 December 31, 2022 Fair value of share 20 22 25 30 The shares vest at the end of a four-year period. There are no forfeitures. What amount should be recorded as compensation expense for 2022?
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An entity owed 100% of another's entity's preference shares and 20% of ordinary shares. The investee's share capital outstanding on December 31, 2019 included 5,000,000 of 10% cumulative preference shares and 10,000,000 of ordinary shares. The investee reported net income of 8,000,000 for 2019. No dividend was declared for both preference and ordinary shares in 2019. What amount should be reported as investment income for 2019? a. 1,600,000 b. 1,500,000 c. 2,000,000 d. 1,000,000
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