The value of compensation expense of the company. Giveninformation: Number of shares granted as SARs is 200,000. Vesting period is 3 years. Pre-established price at the beginning of the year is $55. Fair value of SAR as on December 31, 2018 is $7. Fair value of SAR as on December 31, 2019 is $13. Fair value of SAR as on December 31, 2020 is $11.

Question

Want to see the full answer?

Answer 1

Question

Chapter 19, Problem 19.6E

a.

To determine

The value of compensation expense of the company.

Giveninformation:

Number of shares granted as SARs is 200,000.

Vesting period is 3 years.

Pre-established price at the beginning of the year is $55.

Fair value of SAR as on December 31, 2018 is $7.

Fair value of SAR as on December 31, 2019 is $13.

Fair value of SAR as on December 31, 2020 is $11.

b.

To determine

To prepare: The journal entries of the value of compensation expense of the company.

Given information:

Number of shares granted as SARs is 200,000

Vesting period is 3 years.

Pre-established price at the beginning of the year is $55.

Fair value of SAR as on December 31, 2018 is $7.

Fair value of SAR as on December 31, 2019 is $13.

Fair value of SAR as on December 31, 2020 is $11.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

What is its PE ratio on these financial accounting question?

Don't use ai given answer accounting questions

Equipment with a cost of $1,912,000 has an estimated salvage value of $52,000 and an estimated life of 4 years or 47,000 hours. It is to be depreciated using the units-of-activity method. What is the amount of depreciation for the first full year, during which the equipment was used for 9,200 hours?

Answer 2

Question

Chapter 19, Problem 19.6E

a.

To determine

The value of compensation expense of the company.

Giveninformation:

Number of shares granted as SARs is 200,000.

Vesting period is 3 years.

Pre-established price at the beginning of the year is $55.

Fair value of SAR as on December 31, 2018 is $7.

Fair value of SAR as on December 31, 2019 is $13.

Fair value of SAR as on December 31, 2020 is $11.

b.

To determine

To prepare: The journal entries of the value of compensation expense of the company.

Given information:

Number of shares granted as SARs is 200,000

Vesting period is 3 years.

Pre-established price at the beginning of the year is $55.

Fair value of SAR as on December 31, 2018 is $7.

Fair value of SAR as on December 31, 2019 is $13.

Fair value of SAR as on December 31, 2020 is $11.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 19, Problem 19.6E

a.

To determine

The value of compensation expense of the company.

Giveninformation:

Number of shares granted as SARs is 200,000.

Vesting period is 3 years.

Pre-established price at the beginning of the year is $55.

Fair value of SAR as on December 31, 2018 is $7.

Fair value of SAR as on December 31, 2019 is $13.

Fair value of SAR as on December 31, 2020 is $11.

b.

To determine

To prepare: The journal entries of the value of compensation expense of the company.

Given information:

Number of shares granted as SARs is 200,000

Vesting period is 3 years.

Pre-established price at the beginning of the year is $55.

Fair value of SAR as on December 31, 2018 is $7.

Fair value of SAR as on December 31, 2019 is $13.

Fair value of SAR as on December 31, 2020 is $11.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 19, Problem 19.6E

a.

To determine

The value of compensation expense of the company.

Giveninformation:

Number of shares granted as SARs is 200,000.

Vesting period is 3 years.

Pre-established price at the beginning of the year is $55.

Fair value of SAR as on December 31, 2018 is $7.

Fair value of SAR as on December 31, 2019 is $13.

Fair value of SAR as on December 31, 2020 is $11.

b.

To determine

To prepare: The journal entries of the value of compensation expense of the company.

Given information:

Number of shares granted as SARs is 200,000

Vesting period is 3 years.

Pre-established price at the beginning of the year is $55.

Fair value of SAR as on December 31, 2018 is $7.

Fair value of SAR as on December 31, 2019 is $13.

Fair value of SAR as on December 31, 2020 is $11.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 19, Problem 19.6E

a.

To determine

The value of compensation expense of the company.

Giveninformation:

Number of shares granted as SARs is 200,000.

Vesting period is 3 years.

Pre-established price at the beginning of the year is $55.

Fair value of SAR as on December 31, 2018 is $7.

Fair value of SAR as on December 31, 2019 is $13.

Fair value of SAR as on December 31, 2020 is $11.

b.

To determine

To prepare: The journal entries of the value of compensation expense of the company.

Given information:

Number of shares granted as SARs is 200,000

Vesting period is 3 years.

Pre-established price at the beginning of the year is $55.

Fair value of SAR as on December 31, 2018 is $7.

Fair value of SAR as on December 31, 2019 is $13.

Fair value of SAR as on December 31, 2020 is $11.

Answer 6

Chapter 19, Problem 19.6E

a.

To determine

The value of compensation expense of the company.

Giveninformation:

Number of shares granted as SARs is 200,000.

Vesting period is 3 years.

Pre-established price at the beginning of the year is $55.

Fair value of SAR as on December 31, 2018 is $7.

Fair value of SAR as on December 31, 2019 is $13.

Fair value of SAR as on December 31, 2020 is $11.

Answer 7

Chapter 19, Problem 19.6E

a.

To determine

The value of compensation expense of the company.

Giveninformation:

Number of shares granted as SARs is 200,000.

Vesting period is 3 years.

Pre-established price at the beginning of the year is $55.

Fair value of SAR as on December 31, 2018 is $7.

Fair value of SAR as on December 31, 2019 is $13.

Fair value of SAR as on December 31, 2020 is $11.

Answer 8

b.

To determine

To prepare: The journal entries of the value of compensation expense of the company.

Given information:

Number of shares granted as SARs is 200,000

Vesting period is 3 years.

Pre-established price at the beginning of the year is $55.

Fair value of SAR as on December 31, 2018 is $7.

Fair value of SAR as on December 31, 2019 is $13.

Fair value of SAR as on December 31, 2020 is $11.

Answer 9

b.

To determine

To prepare: The journal entries of the value of compensation expense of the company.

Given information:

Number of shares granted as SARs is 200,000

Vesting period is 3 years.

Pre-established price at the beginning of the year is $55.

Fair value of SAR as on December 31, 2018 is $7.

Fair value of SAR as on December 31, 2019 is $13.

Fair value of SAR as on December 31, 2020 is $11.

Answer 10

Expert Solution & Answer

Answer 11

Expert Solution & Answer

Answer 12

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 13

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

Solution Summary: The author calculates the value of compensation expense of the company, based on the number of shares granted as SARs.

Concept explainers

Want to see the full answer?

Chapter 19 Solutions