Homework Answers
a) below entry will be passed each year for 3 years starting 2014 through 2016
| Dr. Share option expense | 1200000 | |||
| Cr. Equity | 1200000 | |||
| [(200000 × 18) ÷ 3 periods] = 1200000 per period | ||||
Financial statement effects template
b) No, Option to buy at $ 27
entitles the CEO right to purchase the share at $ 27, as the
company's stock price is $ 24 CEO can purchase the shares directly
at $24 instead of exercising option at $27. Exercising the option
at this stage would mean a loss of $ 3 per share
c) exercising option will have net zero effect on companies financial statement
Add Answer to:
Identifying and Analyzing Financial Statement Effects of Share-Based Compensation Weaver Industries implements a new sh...
On January 1, 2018, Pronghorn Property Management Inc. introduced a stock-based compensation plan for its senior...
On January 1, 2018, Pronghorn Property
Management Inc. introduced a stock-based compensation plan for its
senior executives. The company has a December 31, 2018 year-end and
the following events occurred: ● January 1, 2018 – The company
issued 324,000 options to senior management executives for the
purchase of shares at $11 / share. The fair value of the options
using an options pricing model is $2,268,000. Options vest over a
three-year period and it is estimated that 90% of the...
Identifying and Analyzing Financial Statement Effects of Stock Transactions
Identifying and Analyzing Financial Statement Effects of Stock Transactions The stockholders' equity of Verrecchia Company at December 31, 2011 , follows:Common stock, $5 par value, 350,000 shares authorized; 120,000 shares issued and outstanding $600,000Paid-in capital in excess of par value600,000Retained earnings346,000During 2012, the following transactions occurred:Jan. 5 Issued 10,000 shares of common stock for $ 12 cash per share.Jan. 18 Purchased 4,000 shares of common stock for the treasury at $ 14 cash per share.Mar. 12 Sold one-fourth of the treasury shares...
Identifying and Analyzing Financial Statement Effects of Stock Transactions.
Identifying and Analyzing Financial Statement Effects of Stock Transactions. The stockholders' equity of Verrecchia Company at December 31, 2011, follows:Common stock, $5 par value, 350,000 shares authorized; 130,000 shares issued and outstanding$650,000Paid-in capital in excess of par value600,000Retained earnings346,000During 2012, the following transactions occurred:Jan. 5 Issued 10,000 shares of common stock for $ 12 cash per share.Jan. 18 Purchased 4,000 shares of common stock for the treasury at $ 13 cash per share.Mar. 12 Sold one-fourth of the treasury shares acquired...
On January 1, 2018, Pronghorn Property Management Inc. introduced a stock-based compensation plan for its senior...
On January 1, 2018, Pronghorn Property Management Inc. introduced a stock-based compensation plan for its senior executives. The company has a December 31, 2018 year-end and the following events occurred: • January 1, 2018 - The company issued 324,000 options to senior management executives for the purchase of shares at $11/ share. The fair value of the options using an options pricing model is $2,268,000. Options vest over a three-year period and it is estimated that 90% of the options...
Heidi Software Corporation provides a variety of share-based compensation plans to its employees. Under its executive...
Heidi Software Corporation provides a variety of share-based compensation plans to its employees. Under its executive stock option plan, the company granted options on January 1, 2021, that permit executives to acquire 7 million of the company's $1 par common shares within the next five years, but not before December 31, 2022 (the vesting date). The exercise price is the market price of the shares on the date of grant, $58.00 per share. The fair value of the 7 million...
Heidi Software Corporation provides a variety of share-based compensation plans to its employees. Under its executive...
Heidi Software Corporation provides a variety of share-based compensation plans to its employees. Under its executive stock option plan, the company granted options on January 1, 2021, that permit executives to acquire 12 million of the company's $1 par common shares within the next five years, but not before December 31, 2022 (the vesting date). The exercise price is the market price of the shares on the date of grant, $84.50 per share. The fair value of the 12 million...
American Optical Corporation provides a variety of share-based compensation plans to its employees. Under its executive...
American Optical Corporation provides a variety of share-based compensation plans to its employees. Under its executive stock option plan, the company granted options on January 1, 2016, that permit executives to acquire 4 million of the company's $1 par common shares within the next five years, but not before December 31, 2017 (the vesting date). The exercise price is the market price of the shares on the date of grant, $14 per share. The fair value of the 4 million...
assuming that the company reports fects of stock-based compensation Accome the company P8-52. Identifying and Analyzing...
assuming that the company reports fects of stock-based compensation Accome the company P8-52. Identifying and Analyzing Financial Statement Effects of Stock Transactions The stockholders' equity of Verrecchia Company at December 31, 2016. follows. Common stock, $5 par value, 500,000 shares authorized: 350,000 shares issued and outstanding Paid-in capital in excess of par value. Retained earnings LO1 $1,750,000 800,000 634.000 Mar. 12 July 17 Oct. 1 During 2017, the following transactions occurred. Jan. 5 Issued 10,000 shares of common stock for...
On January 1, 2018, Wildhorse Property Management Inc. introduced a stock-based compensation plan for its senior...
On January 1, 2018, Wildhorse Property Management Inc. introduced a stock-based compensation plan for its senior executives. The company has a December 31, 2018 year-end and the following events occurred: ● January 1, 2018 – The company issued 339,000 options to senior management executives for the purchase of shares at $9 / share. The fair value of the options using an options pricing model is $2,034,000. Options vest over a three-year period and it is estimated that 90% of the...
American Optical Corporation provides a variety of share-based compensation plans to its employees. Under its executive...
American Optical Corporation provides a variety of share-based compensation plans to its employees. Under its executive stock option plan, the company granted options on January 1, 2018, that permit executives to acquire 19 million of the company's $1 par common shares within the next five years, but not before December 31, 2019 (the vesting date). The exercise price is the market price of the shares on the date of grant, $27.50 per share. The fair value of the 19 million...
On January 1, 2018, Pronghorn Property
Management Inc. introduced a stock-based compensation plan for its
senior executives. The company has a December 31, 2018 year-end and
the following events occurred: ● January 1, 2018 – The company
issued 324,000 options to senior management executives for the
purchase of shares at $11 / share. The fair value of the options
using an options pricing model is $2,268,000. Options vest over a
three-year period and it is estimated that 90% of the...
Identifying and Analyzing Financial Statement Effects of Stock Transactions. The stockholders' equity of Verrecchia Company at December 31, 2011, follows:Common stock, $5 par value, 350,000 shares authorized; 130,000 shares issued and outstanding$650,000Paid-in capital in excess of par value600,000Retained earnings346,000During 2012, the following transactions occurred:Jan. 5 Issued 10,000 shares of common stock for $ 12 cash per share.Jan. 18 Purchased 4,000 shares of common stock for the treasury at $ 13 cash per share.Mar. 12 Sold one-fourth of the treasury shares acquired...
On January 1, 2018, Pronghorn Property Management Inc. introduced a stock-based compensation plan for its senior executives. The company has a December 31, 2018 year-end and the following events occurred: • January 1, 2018 - The company issued 324,000 options to senior management executives for the purchase of shares at $11/ share. The fair value of the options using an options pricing model is $2,268,000. Options vest over a three-year period and it is estimated that 90% of the options...
Heidi Software Corporation provides a variety of share-based compensation plans to its employees. Under its executive stock option plan, the company granted options on January 1, 2021, that permit executives to acquire 7 million of the company's $1 par common shares within the next five years, but not before December 31, 2022 (the vesting date). The exercise price is the market price of the shares on the date of grant, $58.00 per share. The fair value of the 7 million...
Heidi Software Corporation provides a variety of share-based compensation plans to its employees. Under its executive stock option plan, the company granted options on January 1, 2021, that permit executives to acquire 12 million of the company's $1 par common shares within the next five years, but not before December 31, 2022 (the vesting date). The exercise price is the market price of the shares on the date of grant, $84.50 per share. The fair value of the 12 million...
assuming that the company reports fects of stock-based compensation Accome the company P8-52. Identifying and Analyzing Financial Statement Effects of Stock Transactions The stockholders' equity of Verrecchia Company at December 31, 2016. follows. Common stock, $5 par value, 500,000 shares authorized: 350,000 shares issued and outstanding Paid-in capital in excess of par value. Retained earnings LO1 $1,750,000 800,000 634.000 Mar. 12 July 17 Oct. 1 During 2017, the following transactions occurred. Jan. 5 Issued 10,000 shares of common stock for...
American Optical Corporation provides a variety of share-based compensation plans to its employees. Under its executive stock option plan, the company granted options on January 1, 2018, that permit executives to acquire 19 million of the company's $1 par common shares within the next five years, but not before December 31, 2019 (the vesting date). The exercise price is the market price of the shares on the date of grant, $27.50 per share. The fair value of the 19 million...
Most questions answered within 3 hours.
-
A
bullet is fired with a velocity of 200.0 m/s from the ground an
angle of...
asked 33 seconds from now -
You notice that in early spring there is an equal distribution
of two different species of...
asked 30 seconds from now -
In JAVA: For this question, you need to create two interface
programs in a package and...
asked 1 minute ago -
The inlet pressure of a steam generator is to be held constant
at 5.00 MPa. During...
asked 1 minute ago -
QUESTION 31
In grid computing, the slowest computer creates a bottleneck and
slows down the entire...
asked 13 minutes ago -
A 236-m-wide river flows due east at a uniform speed of 2.1 m/s.
A boat with...
asked 21 minutes ago -
Here are the results of a monthly index model of stock returns
for FinCorp Stock: r(Fincorp)...
asked 13 minutes ago -
Answer the following questions based on this following business
startup idea:
Our business concept is individualized...
asked 23 minutes ago -
Red light of wavelength 650nm in air passes through two slits
submerged under water with n=1.33....
asked 16 minutes ago -
A random sample of 40 adults with no children under
the age of 18 years reaults...
asked 35 minutes ago -
Now that we have some familiarity with random variables, we are
going to start a discussion...
asked 38 minutes ago -
A beam of microwaves with λ = 0.9 mm is incident upon a 9 cm
slit....
asked 31 minutes ago