Gold Company granted 30,000 share appreciation rights which entitled key employees to receive cash equal to the difference between P200 and the market price of the share on the date each right is exercised. The service period is 2022 through 2024 and the rights are exercisable in 2025. The market price of the share was P250 and P280 on December 31, 2022 and 2023, respectively. What amount should Gold Company report as liability under the share appreciation rights on December 31, 2023? ANSWER: 1,600,000

Gold Company granted 30,000 share appreciation rights which entitled key employees to receive cash equal to the difference between P200 and the market price of the share on the date each right is exercised. The service period is 2022 through 2024 and the rights are exercisable in 2025. The market price of the share was P250 and P280 on December 31, 2022 and 2023, respectively. What amount should Gold Company report as liability under the share appreciation rights on December 31, 2023? ANSWER: 1,600,000

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 18DQ

See similar textbooks

Similar questions

Lion Company granted 30,000 share appreciation rights which entitled key employees to receive cash equal to the difference between P20 and the market price of the share on the date each right is exercised. The service period is 2019 through 2021, and the rights are exercisable in 2022. The market price of the share was P25 and P28 on December 31, 2019 and 2020, respectively. How much should be recorded as compensation expense for 2020? A. 150,000 B. 120,000 C. 110,000 D. 10,000 E. answer not given
Lion Company granted 30,000 share appreciation rights which entitled key employees to receive cash equal to the difference between P20 and the market price of the share on the date each right is exercised. The service period is 2019 through 2021, and the rights are exercisable in 2022. The market price of the share was P25 and P28 on December 31, 2019 and 2020, respectively. How much should be recorded as compensation expense for 2020? Copenhagen Company granted 200 share appreciation rights to each of the 500 employees on January 1, 2016. The rights are due to vest on December 31, 2019 with payment being made on December 31, 2020. Only 80% of the awards vest. January 1, 2016 (predetermined price)150 December 31, 2016 : 180 December 31, 2019 : 210 December 31, 2020 : 190 What amount should be recognized as gain on reversal of share appreciation rights on December 31, 2020?
Lion Company granted 30,000 share appreciation rights which entitled key employees to receive cash equal to the difference between P20 and the market price of the share on the date each right is exercised. The service period is 2019 through 2021, and the rights are exercisable in 2022. The market price of the share was P25 and P28 on December 31, 2019 and 2020, respectively. How much should be recorded as compensation expense for 2020?
DRAX Company granted 30,000 share appreciation rights which entitled key employees to receive cash equal to the difference between ₱50 and the market price of the share on the date each right is exercised. The service period is 2020 through 2022, and the rights are exercisable in 2023. The market price of the share was ₱55 and ₱60 on December 2020 and 2021, respectively. What amount should be recorded as compensation expense for 2021? a. ₱ 200,000 b. ₱ 150,000 c. ₱ 50,000 d. ₱ 350,000
She Company granted 200 share appreciation rights to each of the 1,000 employees on January 1, 2021. The management estimated that 90% of the awards shall vest on December 31, 2023. The fair value of each share appreciation rights on December 31, 2021 is P10. What amount should be reported as accrued liability for the share appreciation rights on December 31, 2022?
Aero Ltd (Aero) has granted 700 share appreciation rights to each of its 400 employees on 1 January 2020. The rights are due to vest on 31 December 2022 with payment payable on 31 December 2023. During 2020, 50 employees leave, and it is anticipated that a further 50 employees will leave during the vesting period. Fair values of the share appreciation rights are as follows: 1 January 2020 $15 31 December 2020 $18 31 December 2021 $20 Required: What liability will be recorded on 31 December 2020 for the share appreciation rights in accordance with HKFRS 2 'Share-based Payments'? A. $2,520,000 B. $1,260,000 C. $3,780,000 D. $1,680,000
Middleton Co. granted 200 share appreciation rights to each of the 1,000 employees on January 1, 2014. The management estimated that 90% of the awards will vest on December 31, 2018. The fair value of each share appreciation right on December 31, 2016 is P15. What is the fair value of the Liability for the share appreciation rights on the end of the year?
Rain INC. granted 5,000 share appreciation rights (SARs) to employees for service on January 1, 2008. Employees earn a cash payment to the appreciation in the share price between January 1, 2008 and December 32, 2010. The share appreciation rights vest on December 31, 2010. Date Fair value of each SAR 1-Jan-08 10 31-Dec-08 12 31-Dec-09 21 31-Dec-10 18 No. od SARs expected to vest 4,500 4,500 1,750 4,850 Answer tha following questions: What is the journal entry on January 1, 2008? What is the journal entry on December 31, 2008? What is the journal entry on December 31, 2009? What is the journal entry on December 31, 2010?
Good Company purchased a franchise on July 1, 2021 for the following considerations: The company paid P1,000,000 and issued 10,000 shares of its P100 par ordinary shares on July 1, 2021. The company's ordinary share is selling at this date at P130 per share. Issued a non-interest bearing note for P3,000,000 payable semi-annually for three years every June 30 and December 31. the first payment is due on Dec. 31, 2021. The Company’s credit rating indicates that it can borrow money at 8% per annum for a loan of this type. Information on present value factors (PV) are:PV of an ordinary annuity of 1 at 8% for 3 periods-----------2.5771PV of an annuity due at 4% for 6 periods---------------------5.4518PV of an ordinary annuity of 1 at 4% for 6 periods-----------5.2421What is the cost of Franchise acquired on July 1, 2021?
Rain INC. granted 5,000 share appreciation rights (SARs) to employees for service on January 1, 2008. Employees earn a cash payment to the appreciation in the share price between January 1, 2008 and December 32, 2010. The share appreciation rights vest on December 31, 2010. Date Fair value of each SAR 1-Jan-08 10 31-Dec-08 12 31-Dec-09 21 31-Dec-10 18 No. od SARs expected to vest 4,500 4,500 1,750 4,850 Answer tha following questions: What is the journal entry on December 31, 2010?
t January 1,2019, the Retained Earnings account has a balance of P 3,500,000. During the year, a 15% bonus issue was declared on its ordinary shares with a total par value of P 5,000,000 ( 50,000 shares outstanding). The fair value of each ordinary share on the date of declaration is P 120 and on the date of payment, P 125. Also, during the year, it was discovered that the depreciation expense charged for the year 2018 was P 300,000 instead of P 170,000 only. Corporate income tax is 32%. Treasury shares costing P 20,000 were also reacquired and it was noted that from the balance of Retained Earnings at the end of the year, the board of directors will appropriate 20% for the purpose of future expansion. Profit for the year 2019 was P 1,500,000.What is the balance of the Retained Earnings- Appropriated at December 31,2019? P 857,680 P 857,860 P 837,680 P 873,860
At January 1,2019, the Retained Earnings account has a balance of P 2,500,000. During the year, a 15% bonus issue was declared on its ordinary shares with a total par value of P 5,000,000 ( 50,000 shares outstanding). The fair value of each ordinary share on the date of declaration is P 120 and on the date of payment, P 125. Also, during the year, it was discovered that the depreciation expense charged for the year 2018 was P 300,000 instead of P 150,000 only. Corporate income tax is 30%. Treasury shares costing P 20,000 were also reacquired and it was noted that from the balance of Retained Earnings at the end of the year, the board of directors will appropriate 10% for the purpose of future expansion. Profit for the year 2019 was P 1,500,000. What are the balance of the Retained Earnings-Appropriated and Unappropriated at December 31,2019?