Sheridan Limited established a SARS program that entitled its new president, Carol Garcia, to receive cash for the difference between the Sheridan common shares' fair value and a pre-established price of $33 (also fair value on December 31, 2022), on 43,000 SARs. The date of grant is December 31, 2022, and the required employment (service) period is four years. The common shares' fair value fluctuated as follows: December 31, 2023, $36; December 31, 2024, $39; December 31, 2025, $46; December 31, 2026, $36; and December 31, 2027, $49. Sheridan recognizes the SARS in its financial statements. Carol exercised half of the SARS on June 1, 2028, when the share price was $47. Assume that Sheridan follows ASPE. (c) Prepare the entry at June 1, 2028, for the exercise of the SARS.

Sheridan Limited established a SARS program that entitled its new president, Carol Garcia, to receive cash for the difference between the Sheridan common shares' fair value and a pre-established price of $33 (also fair value on December 31, 2022), on 43,000 SARs. The date of grant is December 31, 2022, and the required employment (service) period is four years. The common shares' fair value fluctuated as follows: December 31, 2023, $36; December 31, 2024, $39; December 31, 2025, $46; December 31, 2026, $36; and December 31, 2027, $49. Sheridan recognizes the SARS in its financial statements. Carol exercised half of the SARS on June 1, 2028, when the share price was $47. Assume that Sheridan follows ASPE. (c) Prepare the entry at June 1, 2028, for the exercise of the SARS.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 6P

See similar textbooks

Similar questions

3
*see attached What is the compensation expense for 2021?a. 120,000b. 240,000c. 200,000d. 660,000
CASE 5: CHARLOTTE, INC. On January 1, 20x1, Charlotte, Inc. entity grants 100 share options to each of its 500 employees. Each grant is conditional upon the employee working for the entity over the next three (3) years. The entity estimates that the fair value of the share option is P24. On the basis of a weighted average probability, the entity estimates that 20% of employees will leave during the three (3) year period and therefore forfeit their rights to the share options. REQUIRED: If everything turns out exactly as expected, compute the following: 15. Salaries expense for 20x1 16. Salaries expense for 20x2 17. Salaries expense for 20x3
Problem 4: (Share-based compensation: Share options) On January 1, 2020, COLOR Company granted 250 share options to 300 employees, conditional upon the employees remaining in the entity’s employ during the vesting period. The share options will vest over a three-year period. The fair value of each share option is ₱50. By the end 0f 2020, 25 employees have left and based on a weighted average probability, a further 20 employees will leave during the vesting period. By the end of 2021, only 10 employees have left and a further 28 employees will leave during 2022. By the end of 2022, only 30 employees left the entity. All share options are exercised at December 31, 2022. G. Fill in the amounts per individual account based on the exercise of the options on December 31, 2022 14. Debit to Cash?15. Debit to Share options outstanding?
Refer to the table below THUNDER INC. granted 5,000 share appreciation rights (SARS) to employees for services on January 1, 2008. Employees earn a cash payment equal to the appreciation in the share price between Januarv 1,2008 and December 31, 2010. The share appreciation rights vest on December 31, 2010. Dute Fair value of each SAR No. of SARS expected to vest 1-Jan-05 10 4,500 31-Dec-08 12 4,500 31-Dec-09 21 1.750 31-D-10 18 4,550
13
22. A company grants 100 Share appreciation rights (SAR), payable in cash, to an employee on 1/1/Y1. The predetermined amount for the SAR plan is P50 per right, and the market value of the stock is P55 on 12/31/Y1, P53 on 12/31/Y2, and P61 on 12/31/Y3. Liability on SAR at the end of year 2 is?
6
years. SUFFUSE estimates that the fair value of each share option employee remaining in SUFFUSE's employ over the next thre options to each of its 100 key employees conditional upon each On January 1, 20x1, SUFFUSE TO FILL Co. grants 1,000 shane Use the following information for the next four questions: Fact pattern: is P30, 3. On the basis of a weighted average probability, SUFFUSE Co. estimates on January 1, 20x1 that 20 per cent of employees (100 x 20% = 20 employees) will leave during the three-year period and therefore forfeit their rights to the share options. During 20x1, 2 employees left. The entity revised its estimate of total employee departures over the three-year period from 20 per cent (20 employees) to 15 per cent (15 employees). During 20x2, additional 3 employees left. The entity revised its estimate of total employee departures over the three-year period from 15 per cent to 12 per cent (12 employees). During 20x3, additional 5 employees left. Hence, a total of 10…
2. On January 1, 2019, an entity granted 60,000 share options to employees. The share options vest at the end of three years provide the employees remain in service until then. The option price is P60 and the par value is P50. At the date of grant, the entity concluded that the fair value of the share options cannot be measured reliably. The share options can be exercised within one year after vesting. The share prices are P62 on December 31, 2019, P66 on December 31, 2020, P75 on December 31, 2021 and P85 on December 31, 2022. All options were exercised on December 31, 2022. • What is the compensation expense for 2021? 3. An entity began operations January 1, 2015 and reported the following net income or loss for five years of operations. 2015 P1 500 000 Loss 2016 1 300 000 Loss 2017 1 200 000 Loss 2018 4 500 000 Income 2019 9 000 000 Income On December 31, 2019, the capital accounts were: Preference share capital, P100
18
*see attached problem REQUIRED: What amount should be recognized as accrued liability for share appreciation rights on Dec. 31, 2022?