QUESTION 19On January 1, 2020, Korsak, Inc. established a stock appreciation rights plan for its executives. It entitled them to receive cash atany time during the next four years for the difference between the market price of its common stock and a pre-established price of$20 on 120,000 SARS. Current market prices of the stock are as follows:January 1, 2020December 31, 2020December 31, 2021December 31, 2022$35 per share38 per share30 per share33 per shareComperisation expense relating to the plan is to be recorded over a four-year period beginning January 1, 2020.On December 31, 2022, 50,000 SARS are exercised by executives. What amount of compensation expense should Korsakrecognize for the year ended December 31, 2022?$312,000$780,000$1,140,000O $2,340,000

Employees that have Stock Appreciation Rights (SARs) are entitled to receive a portion of the…

Answered: QUESTION 19 On January 1, 2020, Korsak,…

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

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Chapter1: Financial Statements And Business Decisions

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Problem 4 On December 29, 2018, Blue Company was registered at the Securities and Exchange Commission with 100,00 authorized shares of P100 par value. The following were Blue's transactions: December 29, 2018 May 14, 2019 August 9, 2019 December 31, 2019 Issued 40,000 shares at P105 per share. Purchased 600 of its ordinary shares at P110 per share. 400 treasury shares were resold at P95 per share. Profit for 2019 is P830,000. Dividends paid P200,000. 34. What is the total outstanding shares? 35. What is the balance of treasury shares? 36. How many shares are entitled to receive dividends? 37. What is the total shareholders' equity? Problem 5 Partners A & B have capital balances of P600,000 and P400,000 and share profits and losses in the ratio of 3:2, respectively, before the admission of C. With the consent of B, A sells one-half of his equity to C, with C paying A the amount of P350,000. 38. What is A's capital balance after the admission of C? 39. What is the total partnership…
Briefly outline the significance of the EPS as a measure of financial performance Outline TWO (2) disclosure and presentation requirements of IAS33 The firm had 10 million common stocks in issue for the year ending December 31 2022. On the 1 January 2023 it had issued $2 million of 6% convertible debentures, each $5.00 of debentures can be converted into four common shares on the 1 of January at the option of the holder of the debenture. The firm had profit after tax for the year ended December 31, 2022, of $1 850 000. The firm pays tax at 30% for the year ended. Required: Calculate the Basic and diluted EPS for the year 2022 Outline the need to disclose a diluted EPS figure and on the relevance of this to the sharehol
Brief Exercise 10-50Preferred and Common Stock Dividends Brookshed Corporation has a single class of common stock and a single class of cumulative preferred stock. The cumulative preferred stock requires the corporation to pay an annual dividend of $11,000 to preferred stockholders. On January 1, 2019, Brookshed's preferred dividends were 1 year in arrears, which means that Brookshed declared neither preferred nor common dividends in 2018. During the next 3 years (2019–2021), Brookshed's board of directors determined they would be able to pay $17,000, $18,000, and $21,000, respectively. Required: Show how these anticipated payments will be split between preferred and common stockholders. If an amount box does not require an entry, leave it blank and if the answer is zero, enter "0".
Jones Corporation’s capital structure follows. December 31 2020 Outstanding shares of stock Common stock, outstanding shares 110,000 Convertible preferred stock, outstanding shares 10,000 8% Convertible bonds $1,000,000 During 2020, Jones declared and paid dividends of $3.00 per share on its preferred stock. The preferred shares are convertible into 20,000 shares of common stock. The 8% bonds are convertible into 30,000 shares of common stock. Net income for 2020 is $850,000. Assume that the income tax rate is 25%. a) Compute basic EPS for 2020. b) Compute diluted EPS for 2020. c) Prepare the bottom of the company’s income statement in proper form, beginning with the net income.
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Cash Dividends Cyprus Corporation issued 12,000 shares of common stock. At the beginning of the year, Cyprus held 5,000 shares of treasury stock, but it reissued 1,000 of those shares in October. On December 1, 2019, Cyprus's board of directors declares a cash dividend of $0.95 per share payable on December 20, 2019, to stockholders of record on December 15, 2019. Required: Prepare the appropriate journal entries for the date of declaration, date of record, and date of payment. If no entry is required, choose "No entry required" and leave the amount boxes blank.
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Part B During 2023, the Nicklaus Corporation participated in three treasury shares transactions: On June 30, 2023, the corporation reacquires 200,000 shares for the treasury at a price of $12 a. per share. b. On July 3, 2023, 50,000 treasury shares are reissued at $15 per share. c. On September 30, 2023, 50,000 treasury shares are reissued at $10 per share. Required: 1. Prepare journal entries to record these transactions. 2. Prepare the Nicklaus Corporation shareholders' equity section as it would appear in a statement of financial position prepared at September 30, 2023. (Assume that net profit for the second and third quarters combined was $3,000,000.)
Problem 2 At December 31, 2019, Morgan Corp. had 2,000,000 ordinary shares outstanding. On January 1, 2020, Morgan issued 500,000 preference shares, which were convertible into 1,000,000 ordinary shares. During 2020, Morgan declared and paid P1,500,000 cash dividends on the ordinary shares and P500,000 cash dividends on the preference shares. Net income for the year ended December 31, 2020 was P5,000,000. Assuming an income tax rate of 32%, how much is the basic and diluted earnings per share for the year ended December 31, 2020?
Question 6 On June 1, 2020, Ping Corp. purchased 10,000 of Pong’s 50,000 outstanding shares at a price of P6.00 per share. Pong had earnings of P3,000 per month during 2020 and paid dividends of P10,000 on March 1, 2020 and P12,500 on December 1, 2020. The fair value of Pong’s shares was P6.50 per share on December 31, 2020. Which statement is correct? Group of answer choices Assuming that the investment is FVTOCI, the total effect on Ping’s profit or loss for the year ended December 31, 2020 is P7,500. Assuming that the investment is an associate, the total effect on Ping’s profit or loss for the year ended December 31, 2020 is P3,600. After all closing entries for 2020 are completed, the effect of the increase in fair value on total shareholders' equity would be the same amount under the FVTOCI and FVTPL approaches. Assuming that the investment is FVTPL, the total effect on Ping’s profit or loss for the year ended December 31, 2020 is P2,500.

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