Homework Answers
1. Additional Paid-In Capital from Expired Stock Options
Under the fair value method, if an executive does not exercise a stock option and it is allowed to lapse, Common Stock Option Warrants is debited and Additional Paid-In Capital from Expired Stock Options credited.
2. capital stock
Under the par value method of accounting for treasury stock, the treasury stock is reported on the balance sheet as a deduction from - capital stock.
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Under the fair value method, if an executive does not exercise a stock option and it...
On January 1, 2020, Holiday Inc. offered a stock option incentive plan to a top executive....
On January 1, 2020, Holiday Inc. offered a stock option incentive plan to a top executive. The plan provided the executive 300 stock options for Holiday Inc. $1 par value, common stock at an option price of $15 per share through the expiration date of January 1, 2026. The fair value of the options based upon an option-pricing model on January 1, 2020, is $12,000. The market price at year-end of Holiday Inc. stock is $15 per share on January...
Indigo Ltd. has an executive stock option plan, details of which follow: • The plan entitles...
Indigo Ltd. has an executive stock option plan, details of which follow: • The plan entitles the CEO to purchase 8,400 common shares at $25 each, following a vesting period. • The vesting period is January 1, 2020 through December 31, 2021. • The exercise period is January 1, 2022 through December 31, 2022. • The CEO exercises 6,100 of the stock options on June 30, 2022. The rest of the options are allowed to lapse. • The shares' market...
On January 1, 2016, Howard, Inc. granted to a key executive a fixed compensatory share option...
On January 1, 2016, Howard, Inc. granted to a key executive a fixed compensatory share option plan for 1,000 shares of $4 par common stock for $30 a share. The fair value per option on that date was $14. The service period extended through December 31, 2017. Refer to Exhibit 15-3. What entry, if any, was required on December 31, 2016? no entry was necessary Compensation Expense 7,000 Paid-in Capital Share Options 7,000 Compensation Expense 6,000 Paid-in Capital Share Options 6,000 Compensation Expense 9,000 Deferred...
Under its executive stock option plan, National Corporation granted 30 million options on January 1, 2018,...
Under its executive stock option plan, National Corporation granted 30 million options on January 1, 2018, that permit executives to purchase 30 million of the company’s $1 par common shares within the next six years, but not before December 31, 2020 (the vesting date). The exercise price is the market price of the shares on the date of grant, $30 per share. The fair value of the options, estimated by an appropriate option pricing model, is $3 per option. No...
Under its executive stock option plan, National Corporation granted 30 million options on January 1, 2018,...
Under its executive stock option plan, National Corporation granted 30 million options on January 1, 2018, that permit executives to purchase 30 million of the company’s $1 par common shares within the next six years, but not before December 31, 2020 (the vesting date). The exercise price is the market price of the shares on the date of grant, $25 per share. The fair value of the options, estimated by an appropriate option pricing model, is $3 per option. No...
- Your answer is partially correct. Larkspur Company adopted a stock-option plan on November 30, 2019,...
- Your answer is partially correct. Larkspur Company adopted a stock-option plan on November 30, 2019, that provided that 70,900 shares of $5 par value stock be designated as available for the granting of options to officers of the corporation at a price of $10 a share. The market price was $13 a share on November 30, 2020. On January 2, 2020, options to purchase 29,700 shares were granted to president Tom Winter-14.200 for services to be rendered in 2020...
Prepare the necessary entries from 1/1/20-2/1/22 for the following events using the fair value method. (Credit...
Prepare the necessary entries from 1/1/20-2/1/22 for the
following events using the fair value method. (Credit
account titles are automatically indented when amount is entered.
Do not indent manually. If no entry is required, select "No Entry"
for the account titles and enter 0 for the
amounts.)
1.
On 1/1/20, the stockholders adopted a stock option plan for top
executives whereby each might receive rights to purchase up to
16,000 shares of common stock at $45 per share. The par...
Exercise 138 Prepare the necessary entries from 1/1/17-2/1/19 for the following events using the fair value...
Exercise 138
Prepare the necessary entries from 1/1/17-2/1/19 for the
following events using the fair value method. (Credit
account titles are automatically indented when amount is entered.
Do not indent manually. If no entry is required, select "No Entry"
for the account titles and enter 0 for the
amounts.)
1.
On 1/1/17, the stockholders adopted a stock option plan for top
executives whereby each might receive rights to purchase up to
15,000 shares of common stock at $35 per share....
Under its executive stock option plan, National Corporation granted 12 million options on January 1, 2021,...
Under its executive stock option plan, National Corporation granted 12 million options on January 1, 2021, that permit executives to purchase 12 million of the company's $1 par common shares within the next six years, but not before December 31, 2023 (the vesting date). The exercise price is the market price of the shares on the date of grant, $20 per share. The fair value of the options, estimated by an appropriate option pricing model, is $2 per option. Suppose...
Under its executive stock option plan, National Corporation granted 12 million options on January 1, 2018,...
Under its executive stock option plan, National Corporation granted 12 million options on January 1, 2018, that permit executives to purchase 12 million of the company's $1 par common shares within the next six years, but not before December 31, 2020 (the vesting date). The exercise price is the market price of the shares on the date of grant, $16 per share. The fair value of the options, estimated by an appropriate option pricing model, is $4 per option. Suppose...
Indigo Ltd. has an executive stock option plan, details of which follow: • The plan entitles the CEO to purchase 8,400 common shares at $25 each, following a vesting period. • The vesting period is January 1, 2020 through December 31, 2021. • The exercise period is January 1, 2022 through December 31, 2022. • The CEO exercises 6,100 of the stock options on June 30, 2022. The rest of the options are allowed to lapse. • The shares' market...
- Your answer is partially correct. Larkspur Company adopted a stock-option plan on November 30, 2019, that provided that 70,900 shares of $5 par value stock be designated as available for the granting of options to officers of the corporation at a price of $10 a share. The market price was $13 a share on November 30, 2020. On January 2, 2020, options to purchase 29,700 shares were granted to president Tom Winter-14.200 for services to be rendered in 2020...
Prepare the necessary entries from 1/1/20-2/1/22 for the
following events using the fair value method. (Credit
account titles are automatically indented when amount is entered.
Do not indent manually. If no entry is required, select "No Entry"
for the account titles and enter 0 for the
amounts.)
1.
On 1/1/20, the stockholders adopted a stock option plan for top
executives whereby each might receive rights to purchase up to
16,000 shares of common stock at $45 per share. The par...
Exercise 138
Prepare the necessary entries from 1/1/17-2/1/19 for the
following events using the fair value method. (Credit
account titles are automatically indented when amount is entered.
Do not indent manually. If no entry is required, select "No Entry"
for the account titles and enter 0 for the
amounts.)
1.
On 1/1/17, the stockholders adopted a stock option plan for top
executives whereby each might receive rights to purchase up to
15,000 shares of common stock at $35 per share....
Under its executive stock option plan, National Corporation granted 12 million options on January 1, 2021, that permit executives to purchase 12 million of the company's $1 par common shares within the next six years, but not before December 31, 2023 (the vesting date). The exercise price is the market price of the shares on the date of grant, $20 per share. The fair value of the options, estimated by an appropriate option pricing model, is $2 per option. Suppose...
Under its executive stock option plan, National Corporation granted 12 million options on January 1, 2018, that permit executives to purchase 12 million of the company's $1 par common shares within the next six years, but not before December 31, 2020 (the vesting date). The exercise price is the market price of the shares on the date of grant, $16 per share. The fair value of the options, estimated by an appropriate option pricing model, is $4 per option. Suppose...
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