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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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.