On January 1, 20x1, TORMENT AGONY Co. granted 1,000 shareappreciation rights (SARS) to employees with the condition thatthe employees remain in service for the next three years.Information on the SARS is shown below:DateN. of SARS expected to vest Fair value of each SARJan. 1. 20x1Dec. 31, 20x1Dec. 31, 20x2Dec. 31, 20х31,00020900248003075032All of the 750 SARS that vested were exercised on December 31,20x3. The intrinsic value (which is equal to the cash paid out) isequal to the fair value of the SARS of P32 on December 31, 20x3.Requirement: Provide all the necessary journal entries.

At inception, liability is recognized for the full amount at Fair Value on that day. Subsequently,…

granted 1,000 share appreciation rights (SARS) to employees with the condition that the employees remain in service for the next three years. Information on the SARS is shown below: Date N. of SARS expected to vest Fair value of each SAR Jan. 1. 20x1 Dec. 31, 20x1 Deс. 31, 20x2 Dес. 31, 20х3 1,000 20 900 24 800 30 750 32 All of the 750 SARS that vested were exercised on December 31, 20x3. The intrinsic value (which is equal to the cash paid out) is equal to the fair value of the SARS of P32 on December 31, 20x3. Requirement: Provide all the necessary journal entries.

granted 1,000 share appreciation rights (SARS) to employees with the condition that the employees remain in service for the next three years. Information on the SARS is shown below: Date N. of SARS expected to vest Fair value of each SAR Jan. 1. 20x1 Dec. 31, 20x1 Deс. 31, 20x2 Dес. 31, 20х3 1,000 20 900 24 800 30 750 32 All of the 750 SARS that vested were exercised on December 31, 20x3. The intrinsic value (which is equal to the cash paid out) is equal to the fair value of the SARS of P32 on December 31, 20x3. Requirement: Provide all the necessary journal entries.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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s
At the beginning of current year, Denver Company sold an equipment with remaining life of 10 years and immediately leased it back for 4 years at the prevailing market rental.Sale price at fair value: 6,000,000Carrying amount of equipment: 4,500,000Annual rental payable at the end of each year: 800,000Implicit interest rate: 10%Present value of an ordinary annuity of 1 at 10% for four periods: 3.17 What amount should be reported as gain on right transferred to the buyer-lessor? 866,0000750,000634,000 What amount should be reported as annual depreciation of the right of u 634,000475,500190,200253,600
27
Xander Company issued 60,000 SARS entitling the holder to receive the difference between the market price at the time of exercise and $25. The fair value of each SAR on the date of grant was $7. The vesting period is 3 years. The SARS are exercised in the 5tn year when the market price is $72. Which of the following is true? a. The liability at the time of exercise is 60,000 x (72 – 25). 5. The company pays upon exercise 60,000 x 25. c. The company receives at the time of exercise 60,000 х 72. d. The liability at the end of the first year is 60,000 x 7.
A Co. recorded a right-of-use asset of $400,000 in a 10-year operating lease. Payments of $65,100 are made annually at the end of each year. The interest rate charged by the lessor was 10%. The balance in the right-of-use asset after the first year will be: a. $376,900. b. $374,900. c. $360,000. d. $400,000.
Aa.38.
QUESTION: Corporation bought a new machine and agreed to pay for it in 5 equal installments of $40,000 at the end of each of the next 5 years. Assuming that the prevailing rate of 6% applies to this contract, how much should Sacks record as the cost of the machine?
42
Salalah Methanol Co. has bought some new machinery at a cost of 1250000 OMR. The impact of the new machinery will be felt in the additional annual cash flows of 375000 OMR over the next five years. What is the payback period for this project? If their acceptance period is three years, will this project be accepted? Select one: O a. None of these O b. 3.84 years, no О с. 2.82 years, yes O d. 2.53 years, yes О е. 3.33 yеars, no
Vishnu
On January 1. 2022, XYZ Lessee leased equipment from Standey Inc. Lessor, signing an Operating Lease with the folowing terms - Both the cost and the fair value of the asset for Stanley Inc. Lessor is $360,000 • Lease specifies 4 annual payments of S60,273 beginning January 1. 2022. and on each January 1 thereater trough 202s. The 4year tarm ends on December 31. 2026 - The asset's expected residual value at the end of the lease term (4 years) is $175,000, unguaranteed by the Lessee The expected useful life of the equipment is 7 years, and there is no expected residual value at the end of its useful ife There is no purchase option, and the equipment reverts back to the Lessor at the end of the 4-year period The implicit rate on the lease is 6%, and XYZ Lessee is aware of that rate. Assume Straight Line Depreciation is used on the Right of Use Asset. Present Value factors are the folowing PV of $1 79209 66506 PV of Annuity Due 3.67301 5.91732 n=7 6% Ar December 31. 2022. end of the first…
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