If you like my explanation, please give a "thumbs up"
For calculation ref:
Assume that on January 1, year 1, ABC Inc. issued 8,800 stock options with an estimated...
Assume that on January 1, year 1, ABC Inc. Issued 7,550 stock options with an estimated value of $12 per option. Each option entitles the owner to purchase one share of ABC stock for $33 a share (the per share price of ABC stock on January 1, year 1, when the options were granted). The options vest at the end of the day on December 31, year 2. All 7,550 stock options were exercised In year 3 when the ABC...
Assume that on January 1, year 1, ABC Inc. issued 5,000 stock options with an estimated value of $10 per option. Each option entities the owner to purchase one share of ABC stock for $25 a share (the per share price of ABC stock on January 1, year 1, when the options were granted). The options vest at the end of the day on December 31 year 2. All 5,000 stock options were exercised in year 3 when the ABC...
Problem 5-36 (LO 5-2) Assume that on January 1 year 1, ABC Inc. issued 5,000 stock options with an estimated value of $10 per option. Each option entities the owner to purchase one share of ABC stock for $25 a share the per share price of ABC stock on January 1 year 1 when the options were granted). The options vest at the end of the day on December 31, year 2. All 5,000 stock options were exercised in year...
Problem 5-36 (LO 5-2) Assume that on January 1, year 1, ABC Inc. issued 5,000 stock options with an estimated value of $10 per option. Each option entitles the owner to purchase one share of ABC stock for $25 a share (the per share price of ABC stock on January 1, year 1, when the options were granted). The options vest at the end of the day on December 31, year 2. All 5,000 stock options were exercised in year...
Assume that on January 1, year 1, ABC Inc. issued 8,800 stock options with an estimated value of $15 per option. Each option entitles the owner to purchase one share of ABC stock for $27 a share (the per share price of ABC stock on January 1, year 1, when the options were granted). The options vest at the end of the day on December 31, year 2. All 8,800 stock options were exercised in year 3 when the ABC...
Assume that on January 1, year 1, DEF, Inc. issued 6,000 stock options with an estimated value of $8 per option. Each option entitles the owner to purchase one share of DEF stock for $20 a share (the per share price of DEF stock on January 1, year 1 when the options were granted). The options vest at the end of the day on December 31, year 2. All 6,000 stock options were exercised in year 3 when the DEF...
Assume that on January 1, year 1, XYZ Corp. issued 1,000 nonqualified stock options with an estimated value of $3.80 per option. Each option entitles the owner to purchase one share of XYZ stock for $14 a share (the per share price of XYZ stock on January 1, year 1 when the options were granted). The options vest 25 percent a year (on December 31) for four years (beginning with year 1). All 500 stock options that had vested to...
Assume that on January 1, year 1, XYZ Corp. issued 1,000 nonqualified stock options with an estimated value of $4.20 per option. Each option entitles the owner to purchase one share of XYZ stock for $14 a share (the per share price of XYZ stock on January 1, year 1 when the options were granted). The options vest 25 percent a year (on December 31) for four years (beginning with year 1). All 500 stock options that had vested to...
ABC expenses stock options as required by GAAP. On January 1, 2015, ABC granted 50 key executives 100 options each. Each option entitled the option holder to purchase 1 share of ABC common stock at $60 per share. The options will vest on January 1st 2018. On the grant date, January 1st, 2015, the stock was quoted on the stock exchange at $63 per share. The fair value of the options on the grant date was estimated at $15 per...
Problem 5-35 (LO 5-2) On July 1 of year 1, Riverside Corp. (RC), a calendar-year taxpayer, acquired the assets of another business in a taxable acquisition. When the purchase price was allocated to the assets purchased, RC determined it had purchased $1,200,000 of goodwill for both book and tax purposes. At the end of year 1, RC determined that the goodwill had not been impaired during the year. In year 2, however, RC concluded that $200,000 of the goodwill had...