. STOCK OPTIONS - Prepare the necessary entries from 1/1/17-2/1/19 for the following events using the...
. STOCK OPTIONS - Prepare the necessary entries from 1/1/17-2/1/19 for the following events using the fair value method. If no entry is needed, write "No Entry Necessary."
a. On 1/1/17, the stockholders adopted a stock option plan for top executives whereby each might receive rights to purchase up to 18,000 shares of common stock at $40 per share. The par value is $10 per share.
b. On 2/1/17, options were granted to each of five executives to purchase 18,000 shares. The options were non-transferable and the executive had to remain an employee of the company to exercise the option. The options expire on 2/1/19. It is assumed that the options were for services performed equally in 2017 and 2018. The Black-Scholes option pricing model determines total compensation expense to be $2,000,000.
c. At 2/1/19, four executives exercised their options. The fifth executive chose not to exercise his options, which therefore were forfeited.
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. STOCK OPTIONS - Prepare the necessary entries from
1/1/17-2/1/19 for the following events using the...
Prepare the necessary entries from 1/1/17-2/1/19 for the following events using the fair value method. 1....
Prepare the necessary entries from 1/1/17-2/1/19 for the following events using the fair value method. 1. On 1/1/17, the stockholders adopted a stock option plan for top executives whereby each might receive rights to purchase up to 19,000 shares of $10 per share. On 2/1/17, options were granted to each of five executives to purchase 19,000 shares. The options were non-transferable and the executive had to remain an employee of the company to exercise the option. The options expire on...
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....
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...
Provide the journal entry only for the exercise of stock options. Do not provide the other...
Provide the journal entry only for the exercise of stock options. Do not provide the other journal entries. On 1/1/20, the stockholders adopted a stock option plan for top executives whereby each might receive rights to purchase up to 30,000 shares of common stock at $40 per share. The par value is $10 per share. On 2/1/20, options were granted to each of five executives to purchase 30,000 shares. The options expire on 2/1/22. It is assumed that the options...
2. The following events occurred at Charlotte Company surrounding stock options Charlotte uses the fair value...
2. The following events occurred at Charlotte Company surrounding stock options Charlotte uses the fair value method of accounting for stock options. a. On 1/1/18 options were granted to each of four executives to purchase 5.000 shares (a total of 20,000 shares) of the company's $2 par value common stock at a price of $30. The options were non-transferable and the executive had to remain an employee of the company through 12-31-19 to exercise the options The options expire on...
On January 1, 2016, Boeing granted 60,000 stock options to key members of its executive team....
On January 1, 2016, Boeing granted 60,000 stock options to key members of its executive team. Each option grants the executives the ability to purchase one share of Boeing’s common stock ($10 par value) at a price of $40 per share. The options were exercisable within a 2-year period beginning on January 1, 2018, as long as the executives remain an employee at Boeing until that date. It is assumed that the options were for services performed equally in 2016...
Gans Incorporated developed a business strategy that uses stock options as a major compensation incentive for its top executives. On January 1, 2024, 20 million options were granted, each giving the executive owning them the right to acquire five $1 par c
Gans Incorporated developed a business strategy that uses stock options as a major compensation incentive for its top executives. On January 1, 2024, 20 million options were granted, each giving the executive owning them the right to acquire five $1 par common shares. The exercise price is the market price on the grant date—$10 per share. Options vest on January 1, 2028. They cannot be exercised before that date and will expire on December 31, 2030. The fair value of...
Accounting for Stock Options (14 points) 2. At the beginning of 2018, Dogbert, Inc. adopted a...
Accounting for Stock Options (14 points) 2. At the beginning of 2018, Dogbert, Inc. adopted a stock option plan for key employees. Under the plan, options are exercisable beginning six years after the grant date for a maximum of eight years. On 1/1/18, Dogbert granted 120,000 options with an exercise (strike) price of $25 when the market price for Dogbert's $1 par value common shares was $25 per share. At that point in time, all options were expected to vest....
On January 1, 2019, Riverbed Corporation granted 11,000 options to key executives. Each option allows the...
On January 1, 2019, Riverbed Corporation granted 11,000 options to key executives. Each option allows the executive to purchase one share of Riverbed’s $5 par value common stock at a price of $19 per share. The options were exercisable within a 2-year period beginning January 1, 2021, if the grantee is still employed by the company at the time of the exercise. On the grant date, Riverbed’s stock was trading at $25 per share, and a fair value option-pricing model...
Under its executive stock option plan, National Corporation granted 18 million options on January 1, 2018,...
Under its executive stock option plan, National Corporation granted 18 million options on January 1, 2018, that permit executives to purchase 18 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, $15 per share. The fair value of the options, estimated by an appropriate option pricing model, is $2 per option. Suppose...
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....
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...
2. The following events occurred at Charlotte Company surrounding stock options Charlotte uses the fair value method of accounting for stock options. a. On 1/1/18 options were granted to each of four executives to purchase 5.000 shares (a total of 20,000 shares) of the company's $2 par value common stock at a price of $30. The options were non-transferable and the executive had to remain an employee of the company through 12-31-19 to exercise the options The options expire on...
Accounting for Stock Options (14 points) 2. At the beginning of 2018, Dogbert, Inc. adopted a stock option plan for key employees. Under the plan, options are exercisable beginning six years after the grant date for a maximum of eight years. On 1/1/18, Dogbert granted 120,000 options with an exercise (strike) price of $25 when the market price for Dogbert's $1 par value common shares was $25 per share. At that point in time, all options were expected to vest....
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