Intermediate Accounting Plus Mylab Accounting With Pearson Etext -- Access Card Package (2nd Edition)
Intermediate Accounting Plus Mylab Accounting With Pearson Etext -- Access Card Package (2nd Edition)
2nd Edition
ISBN: 9780134833101
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Chapter 19, Problem 19.4E

a.

To determine

To prepare: The journal entries for recording of compensation expense over the vesting period.

Giveninformation:

Number of shares as an option is10,000.

Par value of common stock is $2.

Exercise price per share is $18.

Vesting time period is 2 years.

Estimated fair value at the grant date is $250,000 (10,000 shares×$2.5 per share) .

Initial vesting probability is 100%.

b.

To determine

To prepare: The journal entries forrecording of compensation expense over the vesting period.

Given information:

Number of shares as an option is 10,000

Par value of common stock is $2.

Exercise price per share is $18.

Vesting time period is 2 years.

Estimated fair value at the grant date is $250,000 (10,000 shares×$2.5 per share) .

Initial vesting probability of year 1 is 100%.

Vesting probability of year 2 is 60%.

c.

To determine

The journal entries related to recording of expiration of all options.

Given information:

Number of shares as an option is 10,000.

Par value of common stock is $2.

Exercise price per share is $18.

Vesting time period is 2 years.

Estimated fair value at the grant date is $250,000 (10,000 shares×$2.5 per share) .

Initial vesting probability of year 1 is 100%.

Vesting probability of year 2 is 60%.

d.

To determine

To prepare: The journal entries for recording of compensation expense over the vesting period.

Given information:

Number of shares as an option is 10,000

Par value of common stock is $2.

Exercise price per share is $18.

Vesting time period is 2 years.

Estimated fair value at the grant date is $250,000 (10,000 shares×$2.5 per share) .

Initial vesting probability of year 1 is 80%.

Vesting probability of year 2 is 80%.

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Intermediate Accounting Plus Mylab Accounting With Pearson Etext -- Access Card Package (2nd Edition)

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