How much is the excessive tax benefits to be credited to tax expense on January 2, 2019 according to the ASU 2016-09?Answer is $90 million. Please explain the reasoning and calculations million options are expected to vest. On January 2, 2019, all 12 million vested options areexercised when the stock price is $60. The applicable tax rate for all periods is 30%. Thecompany has sufficient taxable income for the stock option tax deductions to reduce incometaxes payable in all periods. Questions 20 to 23 are based on the following information:On January 1, 2016, Telespace Inc. grants 12 million stock options to its employees. Thestock options have exercise price of $20, which is equal to the grant-date price. All optionswill vest in three years. The grant date fair value of the options is $15 per option. All 12

Stock based compensation is the type of compensation or the option which are given to the employees…

Answered: How much is the excessive tax benefits…

Business

Accounting

How much is the excessive tax benefits to be credited to tax expense on January 2, 2019 according to the ASU 2016-09?

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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Use (a) the percentage method and (b) the wage-bracket method to compute the federal income taxes to withhold from the wages or salaries of each employee. Enter all amounts as positive numbers. Round your calculations and final answers to the nearest cent. As we go to press, the federal income tax rates for 2021 are being determined by budget talks in Washington and not available for publication. For this edition, the 2020 federal income tax tables for Manual Systems with Forms W-4 from 2020 or later with Standard Withholding and 2020 FICA rates have been used. Click here to access the Percentage Method Tables. Click here to access the Wage-Bracket Method Tables. Amount to BeWithheld Employee FilingStatus No. of WithholdingAllowances Gross Wageor Salary PercentageMethod Wage-BracketMethod Lennon, A. S N/A $675 weekly $fill in the blank 1 $fill in the blank 2 Starr, P. S N/A 1,365 weekly fill in the blank 3 fill in the blank 4 McNeil, S. MFJ N/A 1,775 biweekly…