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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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.

Expert Solution & Answer

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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 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 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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