On January 1, 2018, M Company granted 90,000 stock options tocertain executives. The options are exercisable no sooner thanDecember 31, 2020, and expire on January 1, 2024. Each optioncan be exercised to acquire one share of $1 par common stock for$12. An option-pricing model estimates the fair value of theoptions to be $5 on the date of grant.If unexpected turnover in 2019 caused the company toestimate that 15% of the options would be forfeited, whatamount should M recognize as compensation expense for2019?

1 Compute the amount to be recognized as compensation for 2019 as follows: Compensation expense =…

Answered: On January 1, 20 ertain executive…

Business

Accounting

On January 1, 20 ertain executive December 31, 20 an be exercised An option-n 12

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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question 13
Chp 26 Q 5
P 10–6 A 3‐year $1,000,000, 10% bond issue was authorized for Mega Corporation on April 1, 2019. Interest is payable on March 31 and September 30. The year‐end of the Corporation is December 31. Required: Consider the following independent cases: 1. The Mega Corporation issued the bonds on April 1, 2019, at 97. Prepare the journal entries required on April 1, 2019, September 30, 2019, and December 31, 2019. Assume straight‐line amortization. 2. The bonds are issued at 106 on April 1, 2019. Prepare the journal entries to record the sale of the bonds on April 1, 2019, and entries required on September 30, 2019, and December 31, 2019 3. The bonds are not issued
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Editing 31 4 Question 3 E16.12 (LO 3) (Issuance, Exercise, and Forfeiture of Share Options) On January 1, 2022, Magilla SA granted share options to officers and key employees for the purchase of 20,000 of the company's C10 par ordinary shares at €25 per share. The options were exercisable by grantees still in the employ of the company within a 5-year period, beginning January 1, 2024, and ending December 31, 2028. The service period for this award is 2 years. Assume that the fair value option- pricing model determines total compensation expense to be €400,00o. On April 1, 2023, 3,000 options were forfeited when the employees resigned from the company. The market price of the ordinary shares was C35 per share on this date. On March 31, 2024, 12,000 options were exercised when the market price of the ordinary shares was C40 per share. Instructions Prenare iournal entries ton record issuance of the share options, forfeiture of the share options,