On January 1, 2024, Fanny Services granted 24 million of its $1 par common shares to executives, subject to forfeitureif employment is terminated within four years. The common shares have a market price of $10 per share on the grantdate. Ignoring taxes, what is the effect of the award of restricted stock units on 2024 earnings?O $0 million.O $60 million.O $24 million.O $240 million.

Calculation of Effect of Restricted Stock Units Effect of Restricted Stock Units per year =…

Answered: On January 1, 2024, Fanny Services…

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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On January 1, 2024, Wallace, Inc. decides to invest in 12,800 shares of Stallion stock when the stock is selling for $11 per share On May 1, 2024, Stallion paid a 50 50 per share cash dividend to stockholders. On December 31, 2024, Stallion reports net income of $120,000 for 2024. Assume Stallion has 32,000 shares of voting stock outstanding during 2024 and Wallace has significant influence over Stallion Read the requirements EXITO Requirement 1. Identify what type of investment the Stallion stock is for Wallace Wallace's investment would be investment
First Link Services granted 5.8 million of its $1 par common shares to executives, subject to forfeiture if employment is terminated within five years. The common shares have a market price of $20 per share on the grant date of the restricted stock award. Ignoring taxes, what is the effect on earnings in the year after the shares are granted to executives?
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The Josh Cutler Corporation provides restricted stock to certain executives. Under the plan, the company granted 30 million shares on January 1, 2024, which vest in four years. The fair value of the shares is $15.00. No forfeitures are anticipated. Ignore taxes. Required: 1. Determine the total compensation cost pertaining to the restricted stock. 2. & 3. Prepare the appropriate journal entries (if any).
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During 2021, Farewell Inc. had 500,000 shares of common stock and 50,000 shares of 6% cumulative preferred stock outstanding. The preferred stock has a par value of $100 per share. Farewell did not declare or pay any dividends during 2021. Farewell's net income for the year ended December 31, 2021, was $2.5 million. The income tax rate is 25%. Farewell granted 10,000 stock options to its executives on January 1 of this year. Each option gives its holder the right to buy 20 shares of common stock at an exercise price of $29 per share. The options vest after one year. The market price of the common stock averaged $30 per share during 2021. What is Farewell's diluted earnings per share for 2021, rounded to the nearest cent? O $3.14. O $4.90. $4.34. O Cannot determine from the given information.
Mary Company’s pretax accounting income is $66,000 and has the following information: Compensation expense for incentive stock options is $19,000. Interest on municipal bonds is $11,000. Unrealized gain on AFS securities is $1500. Taxable income is $66,000 + $11,000 + $19,000 - $1500. $66,000 + $11,000 - $19,000 + $1500. $66,000 - $11,000 + $19,000. $66,000 - $11,000 - $19,000 .
6
1) During 2022, Matador declared preferred dividends of $70,000, paid $90,000 for dividends, and received $135,000 for dividends on available-for-sale equity securities. The bookkeeper did not include any of these when calculating ICO. Determine the adjustment to ICO. Matador has a corporate tax rate of 30%.
Colt Corporation purchased Massey Inc. and agreed to give stockholders of Massey 50,000 additional shares in 2027 if Massey's net income in 2026 is $600,000 or more; in 2025 Massey's net income is $615,000. Colt has net income for 2025 of $1,500,000 and an average number of common shares outstanding of 500,000 shares. What should Colt report as earnings per share for 2025? A) Basic Earnings Per Share - $2.73; Diluted Earnings Per Share - $3.00 B) Basic Earnings Per Share - $3.00; Diluted Earnings Per Share - $2.73 J C) Basic Earnings Per Share - $3.00; Diluted Earnings Per Share - $3.00 D) Basic Earnings Per Share - $2.73; Diluted Earnings Per Share - $2.73
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Nn.101. Subject:- Accounting On January 1, 2024, Tru Fashions Corporation awarded restricted stock units (RSUs) representing 24 million of its $1 par common shares to key personnel, subject to forfeiture if employment is terminated within three years. After the recipients of the RSUs satisfy the vesting requirement, the company will distribute the shares. On the grant date, the shares had a market price of $3.60 per share. Required: Determine the total compensation cost pertaining to the RSUs. Prepare the appropriate journal entry to record the award of RSUs on January 1, 2024. Prepare the appropriate journal entry to record compensation expense on December 31, 2024. Prepare the appropriate journal entry to record compensation expense on December 31, 2025. Prepare the appropriate journal entry to record compensation expense on December 31, 2026. Prepare the appropriate journal entry to record the lifting of restrictions on the RSUs and issuing shares at December 31, 2026.

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