The compensation cost to be recognized for the year and journal entry of it. Given Information: Number of shares granted is 10. Number of employees is 1,200. Exercise price of the shares is $45. Fair value at the grant date is $83. Vesting period is 3 years. Vesting probability is 100% in each year.

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Answer 1

Question

Chapter 19, Problem 19.3P

a.

To determine

To calculate: The compensation cost to be recognized for the year and journal entry of it.

Given Information:

Number of shares granted is 10.

Number of employees is 1,200.

Exercise price of the shares is $45.

Fair value at the grant date is $83.

Vesting period is 3 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 10.

Number of employees is 1,200.

Exercise price of the shares is $45.

Fair value at the grant date is $83.

Vesting period is 3 years.

Vesting probability is 80% in first year.

Vesting probability is 65% in second year.

Vesting probability is 75% in third year.

c.

To determine

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

Given Information:

Number of shares granted is 10.

Number of employees is 1,200.

Exercise price of the shares is $45.

Fair value at the grant date is $83.

Vesting period is 3 years.

Vesting probability is 80% in first year.

Vesting probability is 65% in second year.

Vesting probability is 75% in third year.

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Sharon Mars, a recent graduate of Bell's accounting program, evaluated the operating performance of Carla Vista Company's six divisions. Sharon made the following presentation to Carla Vista's board of directors and suggested the Percy Division be eliminated. "If the Percy Division is eliminated," she said, "our total profits would increase by $25,300." The Other Five Divisions Percy Division Total Sales $1,663,000 $100,900 $1,763,900 Cost of goods sold 978,400 76,500 1,054,900 Gross profit 684,600 24,400 709,000 Operating expenses 528,500 49,700 578,200 Net income $156,100 $(25,300 ) $130,800 In the Percy Division, cost of goods sold is $60,100 variable and $16,400 fixed, and operating expenses are $29,100 variable and $20,600 fixed. None of the Percy Division's fixed costs will be eliminated if the division is discontinued. Is Sharon right about eliminating the Percy Division? Prepare a schedule to support your answer. (Enter negative amounts using either a negative sign preceding…

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Answer 2

Question

Chapter 19, Problem 19.3P

a.

To determine

To calculate: The compensation cost to be recognized for the year and journal entry of it.

Given Information:

Number of shares granted is 10.

Number of employees is 1,200.

Exercise price of the shares is $45.

Fair value at the grant date is $83.

Vesting period is 3 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 10.

Number of employees is 1,200.

Exercise price of the shares is $45.

Fair value at the grant date is $83.

Vesting period is 3 years.

Vesting probability is 80% in first year.

Vesting probability is 65% in second year.

Vesting probability is 75% in third year.

c.

To determine

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

Given Information:

Number of shares granted is 10.

Number of employees is 1,200.

Exercise price of the shares is $45.

Fair value at the grant date is $83.

Vesting period is 3 years.

Vesting probability is 80% in first year.

Vesting probability is 65% in second year.

Vesting probability is 75% in third year.

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Answer 3

Question

Chapter 19, Problem 19.3P

a.

To determine

To calculate: The compensation cost to be recognized for the year and journal entry of it.

Given Information:

Number of shares granted is 10.

Number of employees is 1,200.

Exercise price of the shares is $45.

Fair value at the grant date is $83.

Vesting period is 3 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 10.

Number of employees is 1,200.

Exercise price of the shares is $45.

Fair value at the grant date is $83.

Vesting period is 3 years.

Vesting probability is 80% in first year.

Vesting probability is 65% in second year.

Vesting probability is 75% in third year.

c.

To determine

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

Given Information:

Number of shares granted is 10.

Number of employees is 1,200.

Exercise price of the shares is $45.

Fair value at the grant date is $83.

Vesting period is 3 years.

Vesting probability is 80% in first year.

Vesting probability is 65% in second year.

Vesting probability is 75% in third year.

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Answer 4

Question

Chapter 19, Problem 19.3P

a.

To determine

To calculate: The compensation cost to be recognized for the year and journal entry of it.

Given Information:

Number of shares granted is 10.

Number of employees is 1,200.

Exercise price of the shares is $45.

Fair value at the grant date is $83.

Vesting period is 3 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 10.

Number of employees is 1,200.

Exercise price of the shares is $45.

Fair value at the grant date is $83.

Vesting period is 3 years.

Vesting probability is 80% in first year.

Vesting probability is 65% in second year.

Vesting probability is 75% in third year.

c.

To determine

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

Given Information:

Number of shares granted is 10.

Number of employees is 1,200.

Exercise price of the shares is $45.

Fair value at the grant date is $83.

Vesting period is 3 years.

Vesting probability is 80% in first year.

Vesting probability is 65% in second year.

Vesting probability is 75% in third year.

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Answer 5

Chapter 19, Problem 19.3P

a.

To determine

To calculate: The compensation cost to be recognized for the year and journal entry of it.

Given Information:

Number of shares granted is 10.

Number of employees is 1,200.

Exercise price of the shares is $45.

Fair value at the grant date is $83.

Vesting period is 3 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 10.

Number of employees is 1,200.

Exercise price of the shares is $45.

Fair value at the grant date is $83.

Vesting period is 3 years.

Vesting probability is 80% in first year.

Vesting probability is 65% in second year.

Vesting probability is 75% in third year.

c.

To determine

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

Given Information:

Number of shares granted is 10.

Number of employees is 1,200.

Exercise price of the shares is $45.

Fair value at the grant date is $83.

Vesting period is 3 years.

Vesting probability is 80% in first year.

Vesting probability is 65% in second year.

Vesting probability is 75% in third year.

Answer 6

Chapter 19, Problem 19.3P

a.

To determine

To calculate: The compensation cost to be recognized for the year and journal entry of it.

Given Information:

Number of shares granted is 10.

Number of employees is 1,200.

Exercise price of the shares is $45.

Fair value at the grant date is $83.

Vesting period is 3 years.

Vesting probability is 100% in each year.

Answer 7

Chapter 19, Problem 19.3P

a.

To determine

To calculate: The compensation cost to be recognized for the year and journal entry of it.

Given Information:

Number of shares granted is 10.

Number of employees is 1,200.

Exercise price of the shares is $45.

Fair value at the grant date is $83.

Vesting period is 3 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 10.

Number of employees is 1,200.

Exercise price of the shares is $45.

Fair value at the grant date is $83.

Vesting period is 3 years.

Vesting probability is 80% in first year.

Vesting probability is 65% in second year.

Vesting probability is 75% in third 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 10.

Number of employees is 1,200.

Exercise price of the shares is $45.

Fair value at the grant date is $83.

Vesting period is 3 years.

Vesting probability is 80% in first year.

Vesting probability is 65% in second year.

Vesting probability is 75% in third year.

Answer 10

c.

To determine

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

Given Information:

Number of shares granted is 10.

Number of employees is 1,200.

Exercise price of the shares is $45.

Fair value at the grant date is $83.

Vesting period is 3 years.

Vesting probability is 80% in first year.

Vesting probability is 65% in second year.

Vesting probability is 75% in third year.

Answer 11

c.

To determine

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

Given Information:

Number of shares granted is 10.

Number of employees is 1,200.

Exercise price of the shares is $45.

Fair value at the grant date is $83.

Vesting period is 3 years.

Vesting probability is 80% in first year.

Vesting probability is 65% in second year.

Vesting probability is 75% in third year.

Answer 12

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Answer 13

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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 cost to be recognized for the year and journal entry of it. Given Information: Number of shares granted is 10. Number of employees is 1,200. Exercise price of the shares is $45. Fair value at the grant date is $83. Vesting period is 3 years. Vesting probability is 100% in each year.

Solution Summary: The author calculates the compensation cost to be recognized for the year and journal entry of it. Journalizing is the process of recording the transactions of an organization in a chronological order.

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