Que 4: On June 30, 2018Calgary Corp. granted stock options for 30,000 of its no p common shares to key employees, at an option price of $ 36. On that date, the marke common shares was $ 32. The Black-Scholes option pricing model determined total compensation expense to be $ 720,000. The options are exercisable beginning Janua provided the key employees are still employed by Calgary at the time the options are The options expire on June 30, 2022. On January 2, 2021 , when the market price oft vas $ 42, all 30, options were exercised . The amount of compensation expense C have recorded for calendar 2020 is:

Que 4: On June 30, 2018Calgary Corp. granted stock options for 30,000 of its no p common shares to key employees, at an option price of $ 36. On that date, the marke common shares was $ 32. The Black-Scholes option pricing model determined total compensation expense to be $ 720,000. The options are exercisable beginning Janua provided the key employees are still employed by Calgary at the time the options are The options expire on June 30, 2022. On January 2, 2021 , when the market price oft vas $ 42, all 30, options were exercised . The amount of compensation expense C have recorded for calendar 2020 is:

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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9
Prepare any necessary journal entries for Red Robin's stock-based compensation plan for 2022. Red Robin granted 67,200 employee stock options on January 1, 2021. The options give the employees the right to acquire 67,200 shares of Red Robin's common stock for an exercise price of $21.65 per share. The market price on the date of grant was $21.65. The required vesting period is 2 years, so the options vest on December 31 of the current year (2022). The options have a 7-year expiration period. Additional information is below: Fair Value Actual Forfeitures Estimated Forfeiture Rate 12/31/2021 $5.65 Total compensation expense at fair value Percentage of Options Expected to vest Expected total compensation expense Cumulative rate of amortization Cumulative compensation expense Expense recognized in prior years Current year compensation expense 5% 12/31/2022 $6.25 850 4% 12/31/2021 389,760 95% 370,272 50% 185,136 185,136 12/31/2022 389,760 96% 374,170 100% 374,170 185,136 189,034
On March 1, 2022, Hudson Corp. purchased a put option on shares of ICA stock. The contract was for 100 shares at a strike price of $130 per share, with an expiration date of May 31, 2022. The option contract premium (the amount paid to enter the contract at signing) was $40. On March 31, a market appraisal estimated the time value of the option to be $30. Hudson settled the option contract on May 10. Prices of ICA stock during the option period are provided below. Price of ICA stocks March 1 $130 March 31 $120 May 10 $125 At what amount would Hudson report as the value of the put option in its March 31, 2022 balance sheet? Put Option account balance as of March 31, 2022 4,000
Murray Compensation, Inc. issued 100,000 employee share options on 1/1/2016. The grand-date market price is $18 per share, exercise price is also $18 per share, and the fair value of the options is $9 per share. The vesting period is 3 years. How much stock option compensation should be record for the first year (2016)? Due to the significant decrease in stock price, the fair value of the option dropped to $4 per share as of 1/1/18. As a result, Murray decreased the exercise price of the option to from $18 to $12 per share. With the re-pricing, the fair value is now $6 per share. How much additional compensation should be recorded for 2018? How much total compensation should be recorded for 2018?
) Drie Company granted 126,000 stock options to employees on 12/31/2021 as compensation over the next 3 years. The options had a strike price of $41 per share and market prices of $49 on 12/31/2022 and $47 on 12/31/2023. If they originally estimated the original fair value to be $1,260,000, how much compensation expense should they recognize on 12/31/2023, assuming that the options can only be used to purchase stock? ( ¹) O $1,008,000 O $756,000 O $252,000 O $420,000
Problem 24. On January 1, 2015, ID Inc. granted to an employee the right to choose either: a. 12,000 share (Share or Equity Alternative) (Share options) b. Cash payment equal to market value of 10,000 shares (Cash Alternative) (Share appreciation rights) The grant is conditional upon the completion of three years of service. If the employee chooses the share alternative, the shares must be held for three years after vesting date. The par value of the shares is P25 and at grant date on January 1, 2015, the share price is P51. The share prices for the three-year vesting period are P54 on December 31, 2015, P60 on December 31, 2016 and P65 on December 31, 2017. After taking into account the effects of post-vesting restrictions, the entity has estimated that the fair value of the share or equity alternatives is P48 per share. Required: Based on the result of your audit, determine the following: 1. Compensation expense for year 2015 2. Compensation expense for year 2016 3. Compensation…