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Pastner Brands is a calendar-year firm with operations in several countries. As part of its executive compensation plan, at January 1, 2024, the company issued 480,000 executive stock options permitting executives to buy 480,000 shares of Pastner stock for $38 per share. One-fourth of the options vest in each of the next four years beginning at December 31, 2024 (graded vesting). Pastner elects to separate the total award into four groups (or tranches) according to the year in which they vest and measures the compensation cost for each vesting date as a separate award. The fair value of each tranche is estimated at January 1, 2024, as follows: Vesting Date Amount Fair Value Vesting per Option: December 31, 2024 25% $ 3.90 December 31, 2025 25% $ 4.40 25% $ 4.90 25% $ 5.40 December 31, 2026 December 31, 2027 Required: 1. Determine the compensation expense related to the options to be recorded each year 2024-2027, assuming Pastner allocates the compensation cost for each of the four groups (tranches) separately. 2. Determine the compensation expense related to the options to be recorded each year 2024-2027, assuming Pastner uses the straight-line method to allocate the total compensation cost. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the compensation expense related to the options to be recorded each year 2024-2027, assuming Pastner allocates the compensation cost for each of the four groups (tranches) separately. Note: Enter your answers in whole dollars. Compensation Expense in: Shares Vesting at: 2024 December 31, 2024 $ 468,000 December 31, 2025 2025 264,000 $ 264,000 2026 2027 Total 196,000 162,000 $ 1,090,000 196000 162000 December 31, 2026 S 196,000 162000 622,000 358,000 December 31, 2027 $ 162,000 Total $ 468,000 $ 264,000 $ 196,000 $ 162,000 162,000 $ 2,232,000

Pastner Brands is a calendar-year firm with operations in several countries. As part of its executive compensation plan, at January 1, 2024, the company issued 480,000 executive stock options permitting executives to buy 480,000 shares of Pastner stock for $38 per share. One-fourth of the options vest in each of the next four years beginning at December 31, 2024 (graded vesting). Pastner elects to separate the total award into four groups (or tranches) according to the year in which they vest and measures the compensation cost for each vesting date as a separate award. The fair value of each tranche is estimated at January 1, 2024, as follows: Vesting Date Amount Fair Value Vesting per Option: December 31, 2024 25% $ 3.90 December 31, 2025 25% $ 4.40 25% $ 4.90 25% $ 5.40 December 31, 2026 December 31, 2027 Required: 1. Determine the compensation expense related to the options to be recorded each year 2024-2027, assuming Pastner allocates the compensation cost for each of the four groups (tranches) separately. 2. Determine the compensation expense related to the options to be recorded each year 2024-2027, assuming Pastner uses the straight-line method to allocate the total compensation cost. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the compensation expense related to the options to be recorded each year 2024-2027, assuming Pastner allocates the compensation cost for each of the four groups (tranches) separately. Note: Enter your answers in whole dollars. Compensation Expense in: Shares Vesting at: 2024 December 31, 2024 $ 468,000 December 31, 2025 2025 264,000 $ 264,000 2026 2027 Total 196,000 162,000 $ 1,090,000 196000 162000 December 31, 2026 S 196,000 162000 622,000 358,000 December 31, 2027 $ 162,000 Total $ 468,000 $ 264,000 $ 196,000 $ 162,000 162,000 $ 2,232,000

Power System Analysis and Design (MindTap Course List)
Power System Analysis and Design (MindTap Course List)
6th Edition
ISBN:9781305632134
Author:J. Duncan Glover, Thomas Overbye, Mulukutla S. Sarma
Publisher:J. Duncan Glover, Thomas Overbye, Mulukutla S. Sarma
Chapter3: Power Transformers
Section: Chapter Questions
Problem 3.30P: Reconsider Problem 3.29. If Va,VbandVc are a negative-sequence set, how would the voltage and...
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Pastner Brands is a calendar-year firm with operations in several countries. As part of its executive compensation plan, at January 1, 2024, the company issued 480,000 executive stock options permitting executives to buy 480,000 shares of Pastner stock for $38 per share. One-fourth of the options vest in each of the next four years beginning at December 31, 2024 (graded vesting). Pastner elects to separate the total award into four groups (or tranches) according to the year in which they vest and measures the compensation cost for each vesting date as a separate award. The fair value of each tranche is estimated at January 1, 2024, as follows: Vesting Date Amount Fair Value Vesting per Option: December 31, 2024 25% $ 3.90 December 31, 2025 25% $ 4.40 25% $ 4.90 25% $ 5.40 December 31, 2026 December 31, 2027 Required: 1. Determine the compensation expense related to the options to be recorded each year 2024-2027, assuming Pastner allocates the compensation cost for each of the four groups (tranches) separately. 2. Determine the compensation expense related to the options to be recorded each year 2024-2027, assuming Pastner uses the straight-line method to allocate the total compensation cost. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the compensation expense related to the options to be recorded each year 2024-2027, assuming Pastner allocates the compensation cost for each of the four groups (tranches) separately. Note: Enter your answers in whole dollars. Compensation Expense in: Shares Vesting at: 2024 December 31, 2024 $ 468,000 December 31, 2025 2025 264,000 $ 264,000 2026 2027 Total 196,000 162,000 $ 1,090,000 196000 162000 December 31, 2026 S 196,000 162000 622,000 358,000 December 31, 2027 $ 162,000 Total $ 468,000 $ 264,000 $ 196,000 $ 162,000 162,000 $ 2,232,000
Transcribed Image Text:Pastner Brands is a calendar-year firm with operations in several countries. As part of its executive compensation plan, at January 1, 2024, the company issued 480,000 executive stock options permitting executives to buy 480,000 shares of Pastner stock for $38 per share. One-fourth of the options vest in each of the next four years beginning at December 31, 2024 (graded vesting). Pastner elects to separate the total award into four groups (or tranches) according to the year in which they vest and measures the compensation cost for each vesting date as a separate award. The fair value of each tranche is estimated at January 1, 2024, as follows: Vesting Date Amount Fair Value Vesting per Option: December 31, 2024 25% $ 3.90 December 31, 2025 25% $ 4.40 25% $ 4.90 25% $ 5.40 December 31, 2026 December 31, 2027 Required: 1. Determine the compensation expense related to the options to be recorded each year 2024-2027, assuming Pastner allocates the compensation cost for each of the four groups (tranches) separately. 2. Determine the compensation expense related to the options to be recorded each year 2024-2027, assuming Pastner uses the straight-line method to allocate the total compensation cost. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the compensation expense related to the options to be recorded each year 2024-2027, assuming Pastner allocates the compensation cost for each of the four groups (tranches) separately. Note: Enter your answers in whole dollars. Compensation Expense in: Shares Vesting at: 2024 December 31, 2024 $ 468,000 December 31, 2025 2025 264,000 $ 264,000 2026 2027 Total 196,000 162,000 $ 1,090,000 196000 162000 December 31, 2026 S 196,000 162000 622,000 358,000 December 31, 2027 $ 162,000 Total $ 468,000 $ 264,000 $ 196,000 $ 162,000 162,000 $ 2,232,000
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