Concept explainers
a.
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.
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.
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.
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.
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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Chapter 19 Solutions
Intermediate Accounting (2nd Edition)
- Can you solve this general accounting problem using appropriate accounting principles?arrow_forwardIf the average age of inventory is 80 days, the average age of accounts payable is 55 days, and the average age of accounts receivable is 70 days, the number of days in the cash flow cycle is__.arrow_forwardAnswerarrow_forward
- Can you help me solve this financial accounting question using the correct financial procedures?arrow_forwardWhat is the direct labor time variance?arrow_forwardSunset Crafts Company sells handmade scarves for $28.50 per scarf. In FY 2023, total fixed costs are expected to be $185,000, and variable costs are estimated at $19.75 a unit. Sunset Crafts Company wants to have an FY 2023 operating income of $92,000. Use this information to determine the number of units of scarves that Sunset Crafts Company must sell in FY 2023 to meet this goal. (Don't round-up unit calculation)arrow_forward
Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning