In Ward’s December 31, 2018 statement of comprehensive income, determine the amount to be reported as compensation expense pertaining to the options. In connection with a stock option plan for the benefit of key employees,Ward Corp. intends to distribute treasury shares when the options areexercised. These shares were bought in 2017 at P42 per share. OnJanuary 1, 2018, Ward granted stock options for 10,000 shares at P38per share as additional compensation for services to be rendered overthe next three years. The options are exercisable during a four-yearperiod beginning January 1, 2021, by grantees still employed by Ward.Market price of Ward's stock was P47 per share at the grant date. Thefair value of a similar stock option with the same terms was P12 at thegrant date. No stock options were terminated during 2018.In Ward's December 31, 2018 statement of comprehensive income,determine the amount to be reported as compensation expensepertaining to the options.P90,000O P40,000O POO P30,000

Employee stock ownership plans (ESOPs) are a type of employee benefit plan that allows employees to…

Answered: In Ward’s December 31, 2018 statement…

In Ward’s December 31, 2018 statement of comprehensive income, determine the amount to be reported as compensation expense pertaining to the options.

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Concept explainers

Contract Costing

Contract costing is about tracing particular costs related to a particular contract entered into with the customer. It is one of the forms of job order costing. It is useful in long-term contracts at the most. It is seen that substantial time is required for the completion of the contract which takes different accounting periods. Thus, it is very much helpful for recognizing the costs associated with it and accounting in their specific accounting periods.

Question

100%

In Ward’s December 31, 2018 statement of comprehensive income, determine the amount to be reported as compensation expense pertaining to the options.

In connection with a stock option plan for the benefit of key employees,
Ward Corp. intends to distribute treasury shares when the options are
exercised. These shares were bought in 2017 at P42 per share. On
January 1, 2018, Ward granted stock options for 10,000 shares at P38
per share as additional compensation for services to be rendered over
the next three years. The options are exercisable during a four-year
period beginning January 1, 2021, by grantees still employed by Ward.
Market price of Ward's stock was P47 per share at the grant date. The
fair value of a similar stock option with the same terms was P12 at the
grant date. No stock options were terminated during 2018.
In Ward's December 31, 2018 statement of comprehensive income,
determine the amount to be reported as compensation expense
pertaining to the options.
P90,000
O P40,000
O PO
O P30,000

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