Intermediate Accounting
Intermediate Accounting
1st Edition
ISBN: 9780132162302
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
Question
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Chapter 19, Problem 19.4P

a.

To determine

The compensation expenses in 2015, 2016 and 2017.

Given information:

Number of shares granted as SARs is 100,000

Vesting period is 3 years.

Pre-established price at the beginning of the year is $20.

Fair value of SAR as on December 31, 2015 is $22.

Fair value of SAR as on December 31, 2016 is $23.

Fair value of SAR as on December 31, 2016 is $21.60.

b.

To determine

Journal entry to record the plan.

Given information:

Number of shares granted as SARs is 100,000

Vesting period is 3 years.

Pre-established price at the beginning of the year is $20.

Fair value of SAR as on December 31, 2015 is $22.

Fair value of SAR as on December 31, 2016 is $23.

Fair value of SAR as on December 31, 2016 is $21.60.

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1. Assume there is a 7% sales tax rate in Ohio, where the customer who ordered the boots is located. The sales tax on the order would be $7.63, which L.L. Bean adds to the invoice total. Is the $7.63 added to L.L. Bean's sales revenue?  Why or why not?
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Chapter 19 Solutions

Intermediate Accounting

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