The compensation cost to be recognized for the year. Given Information: Number of shares granted is 100,000. Exercise price of the shares is $12. Fair value at the grant date is $45. Vesting period is 2 years. Vesting probability is 100% in each year.

Question

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Answer 1

Question

Chapter 19, Problem 19.2P

a.

To determine

To calculate: The compensation cost to be recognized for the year.

Given Information:

Number of shares granted is 100,000.

Exercise price of the shares is $12.

Fair value at the grant date is $45.

Vesting period is 2 years.

Vesting probability is 100% in each year.

b.

To determine

The compensation expense for end of the year and journal entry of it.

Given Information:

Number of shares granted is 100,000.

Exercise price of the shares is $12.

Fair value at the grant date is $45.

Vesting period is 2 years.

Vesting probability is 100% in each year.

c.

To determine

The journal entry to record the actual exercise of stock option..

Given Information:

Number of shares granted is 100,000.

Exercise price of the shares is $12.

Fair value at the grant date is $45.

Vesting period is 2 years.

Vesting probability is 100% in each year.

d.

To determine

The value of compensation expense for the end of years and journal entry of it.

Given Information:

Number of shares granted is 100,000.

Exercise price of the shares is $12.

Fair value at the grant date is $45.

Vesting period is 2 years.

Vesting probability is 100% in first year.

Vesting probability is 80% in second year.

e.

To determine

The value of compensation expense for the end of years and journal entry of it.

Given Information:

Number of shares granted is 100,000.

Exercise price of the shares is $12.

Fair value at the grant date is $45.

Vesting period is 2 years.

Vesting probability is 100% in first year.

Vesting probability is 80% in second year.

Unexercised options expired rate is 25%.

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Students have asked these similar questions

Please help me solve this general accounting problem with the correct financial process.

Brightway Corporation began using the allowance method in 2020. On January 1, 2020, Brightway had a $5,000 balance in the accounts receivable account and a zero balance in the allowance for doubtful accounts. During 2020, Brightway provided $30,000 of services on account. The company estimated that 4% of ending accounts receivable would be uncollectible. By the end of 2020, customers had paid $26,000 on their accounts. What is the balance in Brightway Corporation's Allowance for Doubtful Accounts at December 31, 2020?

Please provide the correct answer to this general accounting problem using valid calculations.

Answer 2

Question

Chapter 19, Problem 19.2P

a.

To determine

To calculate: The compensation cost to be recognized for the year.

Given Information:

Number of shares granted is 100,000.

Exercise price of the shares is $12.

Fair value at the grant date is $45.

Vesting period is 2 years.

Vesting probability is 100% in each year.

b.

To determine

The compensation expense for end of the year and journal entry of it.

Given Information:

Number of shares granted is 100,000.

Exercise price of the shares is $12.

Fair value at the grant date is $45.

Vesting period is 2 years.

Vesting probability is 100% in each year.

c.

To determine

The journal entry to record the actual exercise of stock option..

Given Information:

Number of shares granted is 100,000.

Exercise price of the shares is $12.

Fair value at the grant date is $45.

Vesting period is 2 years.

Vesting probability is 100% in each year.

d.

To determine

The value of compensation expense for the end of years and journal entry of it.

Given Information:

Number of shares granted is 100,000.

Exercise price of the shares is $12.

Fair value at the grant date is $45.

Vesting period is 2 years.

Vesting probability is 100% in first year.

Vesting probability is 80% in second year.

e.

To determine

The value of compensation expense for the end of years and journal entry of it.

Given Information:

Number of shares granted is 100,000.

Exercise price of the shares is $12.

Fair value at the grant date is $45.

Vesting period is 2 years.

Vesting probability is 100% in first year.

Vesting probability is 80% in second year.

Unexercised options expired rate is 25%.

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Answer 3

Question

Chapter 19, Problem 19.2P

a.

To determine

To calculate: The compensation cost to be recognized for the year.

Given Information:

Number of shares granted is 100,000.

Exercise price of the shares is $12.

Fair value at the grant date is $45.

Vesting period is 2 years.

Vesting probability is 100% in each year.

b.

To determine

The compensation expense for end of the year and journal entry of it.

Given Information:

Number of shares granted is 100,000.

Exercise price of the shares is $12.

Fair value at the grant date is $45.

Vesting period is 2 years.

Vesting probability is 100% in each year.

c.

To determine

The journal entry to record the actual exercise of stock option..

Given Information:

Number of shares granted is 100,000.

Exercise price of the shares is $12.

Fair value at the grant date is $45.

Vesting period is 2 years.

Vesting probability is 100% in each year.

d.

To determine

The value of compensation expense for the end of years and journal entry of it.

Given Information:

Number of shares granted is 100,000.

Exercise price of the shares is $12.

Fair value at the grant date is $45.

Vesting period is 2 years.

Vesting probability is 100% in first year.

Vesting probability is 80% in second year.

e.

To determine

The value of compensation expense for the end of years and journal entry of it.

Given Information:

Number of shares granted is 100,000.

Exercise price of the shares is $12.

Fair value at the grant date is $45.

Vesting period is 2 years.

Vesting probability is 100% in first year.

Vesting probability is 80% in second year.

Unexercised options expired rate is 25%.

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Answer 4

Question

Chapter 19, Problem 19.2P

a.

To determine

To calculate: The compensation cost to be recognized for the year.

Given Information:

Number of shares granted is 100,000.

Exercise price of the shares is $12.

Fair value at the grant date is $45.

Vesting period is 2 years.

Vesting probability is 100% in each year.

b.

To determine

The compensation expense for end of the year and journal entry of it.

Given Information:

Number of shares granted is 100,000.

Exercise price of the shares is $12.

Fair value at the grant date is $45.

Vesting period is 2 years.

Vesting probability is 100% in each year.

c.

To determine

The journal entry to record the actual exercise of stock option..

Given Information:

Number of shares granted is 100,000.

Exercise price of the shares is $12.

Fair value at the grant date is $45.

Vesting period is 2 years.

Vesting probability is 100% in each year.

d.

To determine

The value of compensation expense for the end of years and journal entry of it.

Given Information:

Number of shares granted is 100,000.

Exercise price of the shares is $12.

Fair value at the grant date is $45.

Vesting period is 2 years.

Vesting probability is 100% in first year.

Vesting probability is 80% in second year.

e.

To determine

The value of compensation expense for the end of years and journal entry of it.

Given Information:

Number of shares granted is 100,000.

Exercise price of the shares is $12.

Fair value at the grant date is $45.

Vesting period is 2 years.

Vesting probability is 100% in first year.

Vesting probability is 80% in second year.

Unexercised options expired rate is 25%.

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Answer 5

Chapter 19, Problem 19.2P

a.

To determine

To calculate: The compensation cost to be recognized for the year.

Given Information:

Number of shares granted is 100,000.

Exercise price of the shares is $12.

Fair value at the grant date is $45.

Vesting period is 2 years.

Vesting probability is 100% in each year.

b.

To determine

The compensation expense for end of the year and journal entry of it.

Given Information:

Number of shares granted is 100,000.

Exercise price of the shares is $12.

Fair value at the grant date is $45.

Vesting period is 2 years.

Vesting probability is 100% in each year.

c.

To determine

The journal entry to record the actual exercise of stock option..

Given Information:

Number of shares granted is 100,000.

Exercise price of the shares is $12.

Fair value at the grant date is $45.

Vesting period is 2 years.

Vesting probability is 100% in each year.

d.

To determine

The value of compensation expense for the end of years and journal entry of it.

Given Information:

Number of shares granted is 100,000.

Exercise price of the shares is $12.

Fair value at the grant date is $45.

Vesting period is 2 years.

Vesting probability is 100% in first year.

Vesting probability is 80% in second year.

e.

To determine

The value of compensation expense for the end of years and journal entry of it.

Given Information:

Number of shares granted is 100,000.

Exercise price of the shares is $12.

Fair value at the grant date is $45.

Vesting period is 2 years.

Vesting probability is 100% in first year.

Vesting probability is 80% in second year.

Unexercised options expired rate is 25%.

Answer 6

Chapter 19, Problem 19.2P

a.

To determine

To calculate: The compensation cost to be recognized for the year.

Given Information:

Number of shares granted is 100,000.

Exercise price of the shares is $12.

Fair value at the grant date is $45.

Vesting period is 2 years.

Vesting probability is 100% in each year.

Answer 7

Chapter 19, Problem 19.2P

a.

To determine

To calculate: The compensation cost to be recognized for the year.

Given Information:

Number of shares granted is 100,000.

Exercise price of the shares is $12.

Fair value at the grant date is $45.

Vesting period is 2 years.

Vesting probability is 100% in each year.

Answer 8

b.

To determine

The compensation expense for end of the year and journal entry of it.

Given Information:

Number of shares granted is 100,000.

Exercise price of the shares is $12.

Fair value at the grant date is $45.

Vesting period is 2 years.

Vesting probability is 100% in each year.

Answer 9

b.

To determine

The compensation expense for end of the year and journal entry of it.

Given Information:

Number of shares granted is 100,000.

Exercise price of the shares is $12.

Fair value at the grant date is $45.

Vesting period is 2 years.

Vesting probability is 100% in each year.

Answer 10

c.

To determine

The journal entry to record the actual exercise of stock option..

Given Information:

Number of shares granted is 100,000.

Exercise price of the shares is $12.

Fair value at the grant date is $45.

Vesting period is 2 years.

Vesting probability is 100% in each year.

Answer 11

c.

To determine

The journal entry to record the actual exercise of stock option..

Given Information:

Number of shares granted is 100,000.

Exercise price of the shares is $12.

Fair value at the grant date is $45.

Vesting period is 2 years.

Vesting probability is 100% in each year.

Answer 12

d.

To determine

The value of compensation expense for the end of years and journal entry of it.

Given Information:

Number of shares granted is 100,000.

Exercise price of the shares is $12.

Fair value at the grant date is $45.

Vesting period is 2 years.

Vesting probability is 100% in first year.

Vesting probability is 80% in second year.

Answer 13

d.

To determine

The value of compensation expense for the end of years and journal entry of it.

Given Information:

Number of shares granted is 100,000.

Exercise price of the shares is $12.

Fair value at the grant date is $45.

Vesting period is 2 years.

Vesting probability is 100% in first year.

Vesting probability is 80% in second year.

Answer 14

e.

To determine

The value of compensation expense for the end of years and journal entry of it.

Given Information:

Number of shares granted is 100,000.

Exercise price of the shares is $12.

Fair value at the grant date is $45.

Vesting period is 2 years.

Vesting probability is 100% in first year.

Vesting probability is 80% in second year.

Unexercised options expired rate is 25%.

Answer 15

e.

To determine

The value of compensation expense for the end of years and journal entry of it.

Given Information:

Number of shares granted is 100,000.

Exercise price of the shares is $12.

Fair value at the grant date is $45.

Vesting period is 2 years.

Vesting probability is 100% in first year.

Vesting probability is 80% in second year.

Unexercised options expired rate is 25%.

Answer 16

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Answer 17

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Answer 18

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Answer 19

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 cost to be recognized for the year. Given Information: Number of shares granted is 100,000. Exercise price of the shares is $12. Fair value at the grant date is $45. Vesting period is 2 years. Vesting probability is 100% in each year.

Solution Summary: The author calculates the compensation cost to be recognized for the year, based on the number of shares granted and the exercise price of the shares.

Concept explainers

To calculate: The compensation cost to be recognized for the year.

Given Information:

Number of shares granted is 100,000.

Exercise price of the shares is $12.

Fair value at the grant date is $45.

Vesting period is 2 years.

Vesting probability is 100% in each year.

The compensation expense for end of the year and journal entry of it.

Given Information:

Number of shares granted is 100,000.

Exercise price of the shares is $12.

Fair value at the grant date is $45.

Vesting period is 2 years.

Vesting probability is 100% in each year.

The journal entry to record the actual exercise of stock option..

Given Information:

Number of shares granted is 100,000.

Exercise price of the shares is $12.

Fair value at the grant date is $45.

Vesting period is 2 years.

Vesting probability is 100% in each year.

Want to see the full answer?

Chapter 19 Solutions

The compensation cost to be recognized for the year. Given Information: Number of shares granted is 100,000. Exercise price of the shares is $12. Fair value at the grant date is $45. Vesting period is 2 years. Vesting probability is 100% in each year.

Solution Summary: The author calculates the compensation cost to be recognized for the year, based on the number of shares granted and the exercise price of the shares.

Concept explainers

To calculate: The compensation cost to be recognized for the year. Given Information: Number of shares granted is 100,000. Exercise price of the shares is $12. Fair value at the grant date is $45. Vesting period is 2 years. Vesting probability is 100% in each year.

The compensation expense for end of the year and journal entry of it. Given Information: Number of shares granted is 100,000. Exercise price of the shares is $12. Fair value at the grant date is $45. Vesting period is 2 years. Vesting probability is 100% in each year.

The journal entry to record the actual exercise of stock option.. Given Information: Number of shares granted is 100,000. Exercise price of the shares is $12. Fair value at the grant date is $45. Vesting period is 2 years. Vesting probability is 100% in each year.

Want to see the full answer?

Chapter 19 Solutions

To calculate: The compensation cost to be recognized for the year.

Given Information:

Number of shares granted is 100,000.

Exercise price of the shares is $12.

Fair value at the grant date is $45.

Vesting period is 2 years.

Vesting probability is 100% in each year.

The compensation expense for end of the year and journal entry of it.

Given Information:

Number of shares granted is 100,000.

Exercise price of the shares is $12.

Fair value at the grant date is $45.

Vesting period is 2 years.

Vesting probability is 100% in each year.

The journal entry to record the actual exercise of stock option..

Given Information:

Number of shares granted is 100,000.

Exercise price of the shares is $12.

Fair value at the grant date is $45.

Vesting period is 2 years.

Vesting probability is 100% in each year.