The journal entries for recording of compensation expense over the vesting period. Given information: Number of shares as an option is 100,000. Par value of common stock is $1.20. Exercise price per share is $4.80. Total option time period is 5 years. Estimated fair value at the grant date is $850,000 ( 100 , 000 shares × $ 8.5 per share ) . Initial vesting probability is 100%.

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Answer 1

Question

Chapter 19, Problem 19.1E

To determine

To prepare: The journal entries for recording of compensation expense over the vesting period.

Given information:

Number of shares as an option is 100,000.

Par value of common stock is $1.20.

Exercise price per share is $4.80.

Total option time period is 5 years.

Estimated fair value at the grant date is $850,000 (100,000 shares×$8.5 per share) .

Initial vesting probability is 100%.

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Answer 2

Question

Chapter 19, Problem 19.1E

To determine

To prepare: The journal entries for recording of compensation expense over the vesting period.

Given information:

Number of shares as an option is 100,000.

Par value of common stock is $1.20.

Exercise price per share is $4.80.

Total option time period is 5 years.

Estimated fair value at the grant date is $850,000 (100,000 shares×$8.5 per share) .

Initial vesting probability is 100%.

Expert Solution & Answer

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Answer 3

Question

Chapter 19, Problem 19.1E

To determine

To prepare: The journal entries for recording of compensation expense over the vesting period.

Given information:

Number of shares as an option is 100,000.

Par value of common stock is $1.20.

Exercise price per share is $4.80.

Total option time period is 5 years.

Estimated fair value at the grant date is $850,000 (100,000 shares×$8.5 per share) .

Initial vesting probability is 100%.

Expert Solution & Answer

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Answer 4

Question

Chapter 19, Problem 19.1E

To determine

To prepare: The journal entries for recording of compensation expense over the vesting period.

Given information:

Number of shares as an option is 100,000.

Par value of common stock is $1.20.

Exercise price per share is $4.80.

Total option time period is 5 years.

Estimated fair value at the grant date is $850,000 (100,000 shares×$8.5 per share) .

Initial vesting probability is 100%.

Expert Solution & Answer

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Answer 5

Chapter 19, Problem 19.1E

To determine

To prepare: The journal entries for recording of compensation expense over the vesting period.

Given information:

Number of shares as an option is 100,000.

Par value of common stock is $1.20.

Exercise price per share is $4.80.

Total option time period is 5 years.

Estimated fair value at the grant date is $850,000 (100,000 shares×$8.5 per share) .

Initial vesting probability is 100%.

Answer 6

Chapter 19, Problem 19.1E

To determine

To prepare: The journal entries for recording of compensation expense over the vesting period.

Given information:

Number of shares as an option is 100,000.

Par value of common stock is $1.20.

Exercise price per share is $4.80.

Total option time period is 5 years.

Estimated fair value at the grant date is $850,000 (100,000 shares×$8.5 per share) .

Initial vesting probability is 100%.

Answer 7

Chapter 19, Problem 19.1E

To determine

To prepare: The journal entries for recording of compensation expense over the vesting period.

Given information:

Number of shares as an option is 100,000.

Par value of common stock is $1.20.

Exercise price per share is $4.80.

Total option time period is 5 years.

Estimated fair value at the grant date is $850,000 (100,000 shares×$8.5 per share) .

Initial vesting probability is 100%.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 19 - What is the allocation period used to expense...Ch. 19 - How do companies account for stock-based...Ch. 19 - Do companies with equity-based compensation plans...Ch. 19 - When accounting for employee stock options, will a...Ch. 19 - Prob. 19.5Q Ch. 19 - Prob. 19.6Q Ch. 19 - Prob. 19.7Q Ch. 19 - Prob. 19.8Q Ch. 19 - Prob. 19.9Q Ch. 19 - Prob. 19.10Q

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