The Josh Cutler Corporation provides restricted stock to certain executives. Under the plan, the company granted 30 million shares January 1, 2024, which vest in four years. The fair value of the shares is $14.90. 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). Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 Determine the total compensation cost pertaining to the restricted stock. Note: Enter your answer in millions (1.e., 10,000,000 should be entered as 10). Total compensation cost million

The Josh Cutler Corporation provides restricted stock to certain executives. Under the plan, the company granted 30 million shares January 1, 2024, which vest in four years. The fair value of the shares is $14.90. 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). Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 Determine the total compensation cost pertaining to the restricted stock. Note: Enter your answer in millions (1.e., 10,000,000 should be entered as 10). Total compensation cost million

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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Microsoft provides compensation to executives in the form of a variety of incentive compensation plans, including restricted stock award grants. The following is an excerpt from a disclosure note from Microsoft's 2020 annual report: Note 18 Employee Stock and Savings Plans (in part) Stock awards entitle the holder to receive shares of Microsoft common stock as the award vests. Stock awards generally vest over a five-year period.... During fiscal year 2020, the following activity occurred under our plans: Stock awards: Nonvested balance, beginning of year. Granted Vested Forfeited Nonvested balance, end of year Shares (in) millions) 147 53 (65) (9) Compensation expense in fiscal 2020 126 Weighted Average Grant-Date Fair Value $78.49 140.49 75.35 90.30 $ 105.23 Required: If all awards are granted, acquired, vested, and forfeited evenly throughout the year, what is the compensation expense in fiscal 2020 pertaining to the previous and current stock awards? Assume forfeited shares were…
Required information [The following information applies to the questions displayed below.] On January 1, year 1, Tyra started working for Hatch Corporation. New employees must choose immediately between receiving 7 NQOs (each NQO provides the right to purchase for $5 per share 10 shares of Hatch stock) or 50 restricted shares. Hatch's stock price is $5 on Tyra's start date. Either form of equity-based compensation will vest in two years. Tyra believes that the stock will be worth $15 per share in two years and $25 in four years when she will sell the stock. Tyra's marginal tax rate is 32 percent and her long-term capital gains rate is 15 percent. Assuming that Tyra's price predictions are correct, answer the following questions (ignore present value, and use nominal dollars): (List cash outflows as negative amounts. Leave no answers blank. Enter zero if applicable.) c. What are the cash-flow effects to Tyra in the year she receives the restricted stock, in the year the stock vests, and…
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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
Cheng/Hamm Incorporated developed a business strategy that uses stock options as a major compensation incentive for its top executives. On January 1, 2024, 23 million options were granted, each giving the executive owning them the right to acquire five $1 par common shares. The exercise price is the market price on the grant date – $30 per share ($150 per option). Options vest on January 1, 2028. They cannot be exercised before that date and will expire on December 31, 2030. The fair value of the 23 million options, estimated by an appropriate option pricing model, is $49 per option. Ignore income tax. Cheng/Hamm's compensation expense in 2024 for these stock options was: Note: Round your answer to nearest whole dollar amount.
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Union Pacific Corp uses stock options as a major compensation incentive for its top executives. On January 1, 2021, 23 million options were granted, each giving the executive owning them the right to acquire five $1 par common shares. The exercise price is the market price on the grant date – $30 per share ($120 per option). Options vest on January 1, 2025. They cannot be exercised before that date and will expire on December 31, 2027. The fair value of the 23 million options, estimated by an appropriate option pricing model, is $43 per option. Ignore income tax. Union Pacific Corp's compensation expense in 2021 for these stock options was: (Round your answer to nearest whole dollar amount.) Multiple Choice $247 million. $989 million. $494 million. $0.
Aylmer follows IFRS On January 1, 2021, Aylmer offered to sell some shares on a subscription basis. The offer was for fifty individuals to purchase 20 common shares each at $20 per share. 50% of the amount was to be paid on June 30, 2021. That transaction was recorded properly in the accounting records of Aylmer. The remaining amount will be received on June 30, 2022. NOTE - Review the trial balance. You should determine if an entry should be made or not and make the required entry(ies) as necessary Balance Sheet Figures 2020 2021 Preferred Shares $500,000 $500,000 Common Stock $1,000,000 $1,500,000 Common Stock Subscribed $0 $20,000 Retained Earnings $364,336 $1,232,597