On Jan. 1, 2020, Fighter Company granted Jeremiah, the president, 20,000 share appreciation rights for past services. These rights are exercisable immediately and expire on Dec. 31, 2021. On exercise, Jeremiah is entitled to receive cash for the excess of the market price on the exercise date over the market price on the grant date. Jeremiah did not exercise any of the rights during 2020. The market price of Fighter's share was Php30 on Jan. 1, 2020 and Php45 on Dec. 31, 2020.

On Jan. 1, 2020, Fighter Company granted Jeremiah, the president, 20,000 share appreciation rights for past services. These rights are exercisable immediately and expire on Dec. 31, 2021. On exercise, Jeremiah is entitled to receive cash for the excess of the market price on the exercise date over the market price on the grant date. Jeremiah did not exercise any of the rights during 2020. The market price of Fighter's share was Php30 on Jan. 1, 2020 and Php45 on Dec. 31, 2020.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: FASB Statement No. 133 requires that all derivative financial instruments be reported at their: a.…

A: Derivatives are a form of financial instruments which changes their value with change in interest…

Q: Bethany incurred $20,500 in research and experimental costs for developing a specialized product…

A: To determine the amount of research and experimental expenses that Bethany may deduct for each year,…

Q: what was austal limited 2019 assest

A: Austal limited is a company involved in business of shipbuilding.

Q: Step by step solutions and explanation and fast solution provide

A: In accounting, temporary differences arise when the tax base of an asset or liability and its…

Q: On January 1, 2018, SARS Co. grants 100 cash share appreciation rights to each of its 500 employees,…

A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…

Q: How was the remaining excess of fair value assigned to brand names calculated - 50,000?

A: In the consolidation worksheet, all the items are recorded in columns where one column shows the…

Q: The following information pertains to Lacson Corporation defined benefit plan for the year 2022:…

A: The urealized gain or loss along with the other gain and losses accumulated in prior year is…

Q: Compute the 2025 amortization and the 12/31/25 book value, assuming that at the beginning of 2025,…

A: Amortization is the amount of expense which is shown in the income statement as decrease in the…

Q: Based on this schedule above, please calculate the Goodwill created in this deal. Assume a 25% tax…

A: When a company displays its potential to earn bigger profits than its actual assets alone would…

Q: Hello!! I need your assitance on the following problem. Problem 5-28 (LO. 1, 2) In each of the…

A: Dividend received deduction: A dividend received deduction is shown in FORM 1120. There is a…

Q: VII. Sigurado Ako Dito, Inc. developed internally a trademark to distinguish its products from those…

A: An asset that does not have a physical existence and lasts for more than one accounting period is…

Q: b. What would Timberline's maximum depreciation deduction be for 2023 assuming no bonus…

A: A deduction is an item of expense that a company can deduct from the revenue. It reduces the…

Q: Provide some examples of items that would be adjusted directly against equity, rather than being…

A: Shareholder’s equity: The amount remaining after subtracting company long term and short term…

Q: Loan interest income ▸ D7/84 • The sequence in determining the taxability of interest income of an…

A: The objective of the question is to understand the sequence in determining the taxability of…

Q: 21. For share appreciation rights, S1. the liability is remeasured at the end of each reporting…

A: Equity Capital - Share capital and equity finance are other names for equity capital. It is referred…

Q: The cost and fair value of non-strategic investments of International Journalist Corporation on…

A: Fair Value Adjustment CalculationDecember 31, 2023Cost: $26,000Fair Value: $23,250Fair Value…

Q: In computing the realized gain in a like-kind exchange, it is necessary to compare A) the fair…

A: market value of the assets given up.

Q: Explain Taxable REIT Subsidiaries?

A: Taxable REIT subsidiary (TRS): It may be an organization straightforwardly or by implication…

Q: On January 1, Year 5, AB Company (AB) purchased 80% of the outstanding common shares of Dandy…

A: Consolidation is an activity in which financial statements of a parent and its subsidiary should be…

Question

As a result of the share appreciation rights, what amount should be recognized as compensation expense for 2020?
*see attached

a. 600,000
b. 100,000
c. 300,000
d. 0

On Jan. 1, 2020, Fighter Company granted Jeremiah, the president,
20,000 share appreciation rights for past services. These rights are
exercisable immediately and expire on Dec. 31, 2021.
On exercise, Jeremiah is entitled to receive cash for the excess
of the market price on the exercise date over the market price
on the grant date. Jeremiah did not exercise any of the rights
during 2020.
The market price of Fighter's share was Php30 on Jan. 1, 2020
and Php45 on Dec. 31, 2020.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Accounting for Current liabilities, Provisions and Contingencies

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.

Similar questions

20. For share appreciation rights S1. the measurement date for liability instruments is the settlement date. S2. share-based payments are remeasured at the end of each reporting period S3. compensation cost is the change in fair value of the instrument from one period to the next a. S1 only b. S2 only c. S1 and S3, but not S2 d. either of the 3 statements is correct e. S3 only f. S2 and S3 but not S1 g. S1 and S2, but not S3
On December 31, 2020, GHI Company had the following balances in its memorandum records related to its defined benefit plan:· Fair value of plan assets- P10,000,000· Benefit obligation- P12,000,000 Other relevant information relating to the plan for 2021 follows:· Current service cost- P2,000,000· Past service cost- P1,300,000· Actual return on plan assets- P1,500,000· Actuarial gain on benefit obligation- P400,000· Actuarial gain on plan assets- P500,000· Present value of benefits settled- P900,000· Settlement price- P800,000· Contribution to the plan- P3,100,000· Discount rate- 12% How much is the employee benefit expense taken to profit or loss during 2021?
Which of the following is not a part of Other Comprehensive Income? Group of answer choices foreign currency translation adjustments gains on the sale of equipment unrealized gains on available-for-sale debt securities unrecognized pension costs
Prepare a nowchart for MACRS depreciationicost recovery of fixed assets. You may limit your flowchart to tangible personal property falling into the 5 and 7 year classes and roal property used in rental and non-rental classes. For purposes of your flowchart, you should assume that Soction 179 exists as well as any "bonus depreciation" provisions that would apply to 2023 acquisitions. Your flowchart does not need to reflect any limitations applicable to automobiles. You may also ignore any depreciation implications related to: Section 179 bonus depreciation on REAL property Alternate MACRS lives/ methods Alternative Minimum Tax State Income taxes You should base your flowchart on 2023 tax provisions. FORMAT Your fiowchart(s) should be asable reference tool that one could follow to determine the proper treatment for any covered situation.
Question 1 For a multifamily acquisition, the seller credit for property tax is $54,356.20. The property tax bill for 2023 is $124,000. What date is the closing set for in 2023? O 6/8/2023 O 6/7/2023 O 6/10/2023 O 6/9/2023 O6/11/2023
What is the meaning of the following:- IAS 40 paragraph 32A, An entity may: (a) choose either the fair value model or the cost model for all investment property backing liabilities that pay a return linked directly to the fair value of, or returns from, specified assets including that investment property; and (b) choose either the fair value model or the cost model for all other investment property, regardless of the choice made in (a).
In 2020, which of the following types of business or investment property is eligible for like-kind exchange? Group of answer choices 1.Machinery & Equipment 2.Inventory held for sale 3.Rental real estate 4. Securities
answer in text form please (without image)
Following data relate to the fixed factory overhead of Cendant Corporation: Actual fixed factory overheads Fixed factory overhead rate Productive capacity at 100% level (in hours) Standard hours for actual units produced $90,000 $6.00 per hour 15,000 hours 14,000 hours Determine the fixed factory overhead volume variance. a. $0 b. $6,000 Favorable c. $8,000 Favorable d. $6,000 Unfavorable
Which option gives the right to sell an asset at any time prior to or at maturity? *A. European PutB. American PutC. American CallD. European Call
Ivanhoe Construction Company uses the percentage-of-completion method of accounting. In 2025, Ivanhoe began work under contract #E2-D2, which provided for a contract price of $2,237,000. Other details follow: Costs incurred during the year Estimated costs to complete, as of December 31 Billings during the year Collections during the year (a) Your answer is correct. Revenue recognized in 2025 Revenue recognized in 2026 LA What portion of the total contract price would be recognized as revenue in 2025? In 2026? (Do not round intermediate calculations.) $ 2025 $616,740 1,006,260 414,000 1,717,000 352,000 2026 $1,441,000 850060 1386940 -0- 1,508,000