LCI Cable Company grants 1 million performance stock options to key executives at January 1, 2021. The options entitle executives to receive 1 million of LCI $1 par common shares, subject to the achievement of specific financial goals over the next four years. Attainment of these goals is considered probable initially and throughout the service period. The options have a current fair value of $12 per option.Required:1. Prepare the appropriate entry when the options are awarded on January 1, 2021.2. Prepare the appropriate entries on December 31 of each year 2021–2024.3. Suppose at the beginning of 2023, LCI decided it is not probable that the performance objectives will be met. Prepare the appropriate entries on December 31 of 2023 and 2024.
LCI Cable Company grants 1 million performance stock options to key executives at January 1, 2021. The options entitle executives to receive 1 million of LCI $1 par common shares, subject to the achievement of specific financial goals over the next four years. Attainment of these goals is considered probable initially and throughout the service period. The options have a current fair value of $12 per option.Required:1. Prepare the appropriate entry when the options are awarded on January 1, 2021.2. Prepare the appropriate entries on December 31 of each year 2021–2024.3. Suppose at the beginning of 2023, LCI decided it is not probable that the performance objectives will be met. Prepare the appropriate entries on December 31 of 2023 and 2024.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
LCI Cable Company grants 1 million performance stock options to key executives at January 1, 2021. The options entitle executives to receive 1 million of LCI $1 par common shares, subject to the achievement of specific financial goals over the next four years. Attainment of these goals is considered probable initially and throughout the service period. The options have a current fair value of $12 per option.
Required:
1. Prepare the appropriate entry when the options are awarded on January 1, 2021.
2. Prepare the appropriate entries on December 31 of each year 2021–2024.
3. Suppose at the beginning of 2023, LCI decided it is not probable that the performance objectives will be met. Prepare the appropriate entries on December 31 of 2023 and 2024.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 4 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
Expert Answers to Latest Homework Questions
Q: Projects of very long duration face unique challenges with regard to end-user testing. What are…
Q: What are some of the challenges that projects of very long duration face?
Q: Karley Company sold equipment on July 1, 2021 for $75,000. The equipment had cost $210,000 and had…
Q: Carey Enterprises sold equipment on January 1, 2021 for $10,000. The equipment had cost $48,000. The…
Q: Foley Word Processing Service uses the straight-line method of depreciation. The company's fiscal…
Q: What are the major products of both of the organic reactions. Use wedges and dashes as needed to…
Q: Lynn Company owns equipment that cost $120,000 when purchased on January 1, 2018. It has been…
Q: 4 sinx cos2x+4 cos x sin2x-1=0
Q: A common way for two people to settle a frivolous dispute is to play a game of rock-paper-scissors.…
Q: A qualifying exam for a graduate school program has a math section and a verbal section. Students…
Q: Hello,
I am struggling with a corporate finance problem.
The problem assumes an M&M world with…
Q: Hi there,
I am working on a corporate finance problem. The problem is:
Assume the M&M Model with…
Q: 1. Consider the function
| ƒ : Z → Z+, f(n) = {
2n
1 2n
if n > 0,
if n≤0.
Show that f is a bijection…
Q: 2. Let X and Y be sets and let f: XY. Prove that
f is injective
for all sets U, for all functions h:…
Q: Scenario Analysis. The common stock of Escapist sells for $25 a share and offers the following…
Q: real vs nominal returns: you purchase 100 shares of stock for $40 a share. The stock pays $2 per…
Q: Hi, need assistance with the following chemistry problem. The Kb(c times m) of H20 is 0.512. I have…
Q: A partnership begins its first year of operations with the following capital balances:
Allegan,…
Q: Need assistance with the chemistry problem in the attachments. Will upvote if satisfied. Thank you.
Q: Hope I need help with the question in the attachment. The practice problem is in the attached…
Q: The following information is given for Gator Company, who uses the FIFO method.
Net
Realizable
NRV…