Concept explainers
a.
To calculate: The compensation cost to be recognized for the year and
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.
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.
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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Chapter 19 Solutions
Pearson eText Intermediate Accounting -- Instant Access (Pearson+)
- I need help with accounting questionarrow_forwardchoose best answerarrow_forwardA company has three divisions, X, Y, and Z, with the following financial data: • Sales for Division X: $1,800,000 Investment in assets for Division X: $630,000 What is the asset turnover (AT) for Division X? A. 1.43 B. 1.60 C. 1.67 D. 2.86 E. 3.33arrow_forward
