The compensation expense for year 2. Given Information: Number of shares granted is 150,000. Exercise price of the shares is $20. Fair value at the grant date is $66. Vesting period is 3 years. Vesting probability is 100% in each year.

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Answer 1

Question

Chapter 19, Problem 19.1P

a.

To determine

To calculate: The compensation expense for year 2.

Given Information:

Number of shares granted is 150,000.

Exercise price of the shares is $20.

Fair value at the grant date is $66.

Vesting period is 3 years.

Vesting probability is 100% in each year.

b.

To determine

The compensation expense for year 3 and journal entry of it.

Given Information:

Number of shares granted is 150,000.

Fair value at the grant date is $66.

Exercise price of the shares is $20.

Vesting period is 3 years.

Vesting probability is 100% in year 1 and 2.

Vesting probability is 75% in year 3

c.

To determine

The journal entry at the time of expiration of remaining stock.

Given Information:

Number of shares granted is 150,000.

Fair value at the grant date is $66.

Exercise price of the shares is $20.

Vesting period is 3 years.

Vesting probability is 100% in year 1 and 2.

Vesting probability is 75% in year 3

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Answer 2

Question

Chapter 19, Problem 19.1P

a.

To determine

To calculate: The compensation expense for year 2.

Given Information:

Number of shares granted is 150,000.

Exercise price of the shares is $20.

Fair value at the grant date is $66.

Vesting period is 3 years.

Vesting probability is 100% in each year.

b.

To determine

The compensation expense for year 3 and journal entry of it.

Given Information:

Number of shares granted is 150,000.

Fair value at the grant date is $66.

Exercise price of the shares is $20.

Vesting period is 3 years.

Vesting probability is 100% in year 1 and 2.

Vesting probability is 75% in year 3

c.

To determine

The journal entry at the time of expiration of remaining stock.

Given Information:

Number of shares granted is 150,000.

Fair value at the grant date is $66.

Exercise price of the shares is $20.

Vesting period is 3 years.

Vesting probability is 100% in year 1 and 2.

Vesting probability is 75% in year 3

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Answer 3

Question

Chapter 19, Problem 19.1P

a.

To determine

To calculate: The compensation expense for year 2.

Given Information:

Number of shares granted is 150,000.

Exercise price of the shares is $20.

Fair value at the grant date is $66.

Vesting period is 3 years.

Vesting probability is 100% in each year.

b.

To determine

The compensation expense for year 3 and journal entry of it.

Given Information:

Number of shares granted is 150,000.

Fair value at the grant date is $66.

Exercise price of the shares is $20.

Vesting period is 3 years.

Vesting probability is 100% in year 1 and 2.

Vesting probability is 75% in year 3

c.

To determine

The journal entry at the time of expiration of remaining stock.

Given Information:

Number of shares granted is 150,000.

Fair value at the grant date is $66.

Exercise price of the shares is $20.

Vesting period is 3 years.

Vesting probability is 100% in year 1 and 2.

Vesting probability is 75% in year 3

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Answer 4

Question

Chapter 19, Problem 19.1P

a.

To determine

To calculate: The compensation expense for year 2.

Given Information:

Number of shares granted is 150,000.

Exercise price of the shares is $20.

Fair value at the grant date is $66.

Vesting period is 3 years.

Vesting probability is 100% in each year.

b.

To determine

The compensation expense for year 3 and journal entry of it.

Given Information:

Number of shares granted is 150,000.

Fair value at the grant date is $66.

Exercise price of the shares is $20.

Vesting period is 3 years.

Vesting probability is 100% in year 1 and 2.

Vesting probability is 75% in year 3

c.

To determine

The journal entry at the time of expiration of remaining stock.

Given Information:

Number of shares granted is 150,000.

Fair value at the grant date is $66.

Exercise price of the shares is $20.

Vesting period is 3 years.

Vesting probability is 100% in year 1 and 2.

Vesting probability is 75% in year 3

Expert Solution & Answer

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Answer 5

Chapter 19, Problem 19.1P

a.

To determine

To calculate: The compensation expense for year 2.

Given Information:

Number of shares granted is 150,000.

Exercise price of the shares is $20.

Fair value at the grant date is $66.

Vesting period is 3 years.

Vesting probability is 100% in each year.

b.

To determine

The compensation expense for year 3 and journal entry of it.

Given Information:

Number of shares granted is 150,000.

Fair value at the grant date is $66.

Exercise price of the shares is $20.

Vesting period is 3 years.

Vesting probability is 100% in year 1 and 2.

Vesting probability is 75% in year 3

c.

To determine

The journal entry at the time of expiration of remaining stock.

Given Information:

Number of shares granted is 150,000.

Fair value at the grant date is $66.

Exercise price of the shares is $20.

Vesting period is 3 years.

Vesting probability is 100% in year 1 and 2.

Vesting probability is 75% in year 3

Answer 6

Chapter 19, Problem 19.1P

a.

To determine

To calculate: The compensation expense for year 2.

Given Information:

Number of shares granted is 150,000.

Exercise price of the shares is $20.

Fair value at the grant date is $66.

Vesting period is 3 years.

Vesting probability is 100% in each year.

Answer 7

Chapter 19, Problem 19.1P

a.

To determine

To calculate: The compensation expense for year 2.

Given Information:

Number of shares granted is 150,000.

Exercise price of the shares is $20.

Fair value at the grant date is $66.

Vesting period is 3 years.

Vesting probability is 100% in each year.

Answer 8

b.

To determine

The compensation expense for year 3 and journal entry of it.

Given Information:

Number of shares granted is 150,000.

Fair value at the grant date is $66.

Exercise price of the shares is $20.

Vesting period is 3 years.

Vesting probability is 100% in year 1 and 2.

Vesting probability is 75% in year 3

Answer 9

b.

To determine

The compensation expense for year 3 and journal entry of it.

Given Information:

Number of shares granted is 150,000.

Fair value at the grant date is $66.

Exercise price of the shares is $20.

Vesting period is 3 years.

Vesting probability is 100% in year 1 and 2.

Vesting probability is 75% in year 3

Answer 10

c.

To determine

The journal entry at the time of expiration of remaining stock.

Given Information:

Number of shares granted is 150,000.

Fair value at the grant date is $66.

Exercise price of the shares is $20.

Vesting period is 3 years.

Vesting probability is 100% in year 1 and 2.

Vesting probability is 75% in year 3

Answer 11

c.

To determine

The journal entry at the time of expiration of remaining stock.

Given Information:

Number of shares granted is 150,000.

Fair value at the grant date is $66.

Exercise price of the shares is $20.

Vesting period is 3 years.

Vesting probability is 100% in year 1 and 2.

Vesting probability is 75% in year 3

Answer 12

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Answer 13

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Answer 14

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Answer 15

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

The compensation expense for year 2. Given Information: Number of shares granted is 150,000. Exercise price of the shares is $20. Fair value at the grant date is $66. Vesting period is 3 years. Vesting probability is 100% in each year.

Solution Summary: The author calculates the compensation expense for year 2, based on the number of shares granted, exercise price, and vesting period.

Concept explainers

To calculate: The compensation expense for year 2.

Given Information:

Number of shares granted is 150,000.

Exercise price of the shares is $20.

Fair value at the grant date is $66.

Vesting period is 3 years.

Vesting probability is 100% in each year.

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Chapter 19 Solutions

The compensation expense for year 2. Given Information: Number of shares granted is 150,000. Exercise price of the shares is $20. Fair value at the grant date is $66. Vesting period is 3 years. Vesting probability is 100% in each year.

Solution Summary: The author calculates the compensation expense for year 2, based on the number of shares granted, exercise price, and vesting period.

Concept explainers

To calculate: The compensation expense for year 2. Given Information: Number of shares granted is 150,000. Exercise price of the shares is $20. Fair value at the grant date is $66. Vesting period is 3 years. Vesting probability is 100% in each year.

The compensation expense for year 3 and journal entry of it. Given Information: Number of shares granted is 150,000. Fair value at the grant date is $66. Exercise price of the shares is $20. Vesting period is 3 years. Vesting probability is 100% in year 1 and 2. Vesting probability is 75% in year 3

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Chapter 19 Solutions

To calculate: The compensation expense for year 2.

Given Information:

Number of shares granted is 150,000.

Exercise price of the shares is $20.

Fair value at the grant date is $66.

Vesting period is 3 years.

Vesting probability is 100% in each year.