ABC Corp Adopts a compensatory stock option plan. The plan covers 25 executives and provides each...
ABC Corp Adopts a compensatory stock option plan. The plan covers 25 executives and provides each executive 300 options to purchase stock for $100/share. The options vest in 3 years The plan starts 1/1/18 and matures 12/31/20 We assume a 95% retention rate At 12/31/20 22 executives ear:n the options. Each option is valued at $17/share Record the journal entries for : 12/31/2018 12/31/2019 12/31/2020
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ABC Corp Adopts a compensatory stock option plan. The plan
covers 25 executives and provides each...
On January 1, 2019, Pepin Company adopts a compensatory share option plan for its 50 executives....
On January 1, 2019, Pepin Company adopts a compensatory share option plan for its 50 executives. The plan allows each executive to purchase 200 shares of its $2 par common stock for $30 per share after completing a 3-year service period. Pepin estimates the value of each option to be $14 on the grant date, and the company expects that 15% of the options will be forfeited and uses this rate in its compensation cost calculations in 2019. At the...
Nadal Company has 20 executives to whom it grants compensatory share options on January 1, 2019....
Nadal Company has 20 executives to whom it grants compensatory share options on January 1, 2019. At that time, it grants each executive the right to purchase 120 shares of its $5 par common stock at $40 per share after a 3-year service period. The value of each option is estimated to be $8.50 on the grant date. Based on its average employee turnover rate each year, Nadal expects that 2 executives will not vest in the plan. At the...
15-8 lantary 5, 2022, 3 executives exercise their options Required: Prepare a memorandum entry on the...
15-8
lantary 5, 2022, 3 executives exercise their options Required: Prepare a memorandum entry on the grant date and journal entries for 2019 through 2022 in Card compensatory share option plan (round all calculations to the nearest whole number). Fixed Share Option Compensation Plan On January 1, 2019. Pepin Company adopts a compensatory option plan for its 50 executive Ves, the plan allows each executive to purchase 200 shares of its $2 par common stock for $30 per share after...
Compensation Expense On January 1, 2019, Phoenix Corporation adopts a performance-based share option plan for 25...
Compensation Expense On January 1, 2019, Phoenix Corporation adopts a performance-based share option plan for 25 executives, with the number of shares based on the yearly increase in sales. At the end of 2019, based on a 10% increase in sales, it expects that each executive will be granted 150 options and that the fair value of an option expected to vest is $15.75. Phoenix expects a turnover rate of 15% over the 3-year service period. Determine the compensation expense...
Stock Option - On 1/1/2020, the stockholders of Firm ABC approve a plan that grants the...
Stock Option - On 1/1/2020, the stockholders of Firm ABC approve a plan that grants the company’s CEO options to purchase 5,000 shares each of the company’s zero par value common stock. - The company grants the options on January 1, 2020. The executives may exercise the options after 1/1/2022. The exercise price per share is $10, and the market price of the stock at the date of grant is $10 per share. - The company computes total compensation expense...
On January 1, 2016, Metlock Corporation granted 10,300 options to key executives. Each option allows the...
On January 1, 2016, Metlock Corporation granted 10,300 options
to key executives. Each option allows the executive to purchase one
share of Metlock’s $5 par value common stock at a price of $21 per
share. The options were exercisable within a 2-year period
beginning January 1, 2018, if the grantee is still employed by the
company at the time of the exercise. On the grant date, Metlock’s
stock was trading at $26 per share, and a fair value option-pricing
model...
On January 1, 2016, Riverbed Corporation granted 10,300 options to key executives. Each option wows the...
On January 1, 2016, Riverbed Corporation granted 10,300 options to key executives. Each option wows the executive to purchase one share of Riverbed's $5 par valve common stock at a price of $20 per share. The options were exercisable within a 2-year period beginning January 1, 2018, 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 $26 per share, and a fair value option pricing...
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...
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...
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...
15-8
lantary 5, 2022, 3 executives exercise their options Required: Prepare a memorandum entry on the grant date and journal entries for 2019 through 2022 in Card compensatory share option plan (round all calculations to the nearest whole number). Fixed Share Option Compensation Plan On January 1, 2019. Pepin Company adopts a compensatory option plan for its 50 executive Ves, the plan allows each executive to purchase 200 shares of its $2 par common stock for $30 per share after...
On January 1, 2016, Metlock Corporation granted 10,300 options
to key executives. Each option allows the executive to purchase one
share of Metlock’s $5 par value common stock at a price of $21 per
share. The options were exercisable within a 2-year period
beginning January 1, 2018, if the grantee is still employed by the
company at the time of the exercise. On the grant date, Metlock’s
stock was trading at $26 per share, and a fair value option-pricing
model...
On January 1, 2016, Riverbed Corporation granted 10,300 options to key executives. Each option wows the executive to purchase one share of Riverbed's $5 par valve common stock at a price of $20 per share. The options were exercisable within a 2-year period beginning January 1, 2018, 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 $26 per share, and a fair value option pricing...
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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