On January 1, 2018, Farmer Fabrication issued stock options for 220,000 shares to a division manager. The options have a...
On January 1, 2018, Farmer Fabrication issued stock options for
220,000 shares to a division manager. The options have an estimated
fair value of $4 each. To provide additional incentive for
managerial achievement, the options are not exercisable unless
divisional revenue increases by 3% in four years. Suppose that
after one year, Farmer estimates that it is not probable
that divisional revenue will increase by 3% in four years.
1. What is the revised estimate of the total
compensation?
2. What action will be taken to account for the
options in 2019? (Answer 2 is already correct)
|
|||||||||||||
Homework Answers
revised estimate of total compensation = no of stock option issued*estimated fair value
revised estimate of total compensation = 220000*4
revised estimate of total compensation = $ 880000
Add Answer to:
On January 1, 2018, Farmer Fabrication issued stock options for 220,000 shares to a division manager. The options have a...
On January 1, 2018, Farmer Fabrication issued stock options for 420,000 shares to a division manager....
On January 1, 2018, Farmer Fabrication issued stock options for 420,000 shares to a division manager. The options have an estimated fair value of $10 each. To provide additional incentive for managerial achievement, the options are not exercisable unless divisional revenue increases by 2% in three years. Suppose that Farmer initially estimates that it is not probable the goal will be achieved, but then after one year, Farmer estimates that it is probable that divisional revenue will increase by 2%...
On October 1, 2018, Farmer Fabrication issued stock options for 340,000 shares to a division manager....
On October 1, 2018, Farmer Fabrication issued stock options for 340,000 shares to a division manager. The options have an estimated fair value of $6 each. To provide additional incentive for managerial achievement, the options are not exercisable unless divisional revenue increases by 5% in five years. Suppose that Farmer initially estimates that it is not probable the goal will be achieved, but then after one year, Farmer estimates that it is probable that divisional revenue will increase by 5%...
Brief Exercise 19-9 Performance-based options (LO19-2] On January 1, 2018, Farmer Fabrication issued stock options for...
Brief Exercise 19-9 Performance-based options (LO19-2] On January 1, 2018, Farmer Fabrication issued stock options for 380,000 shares to a division manager. The options have an estimated fair value of $9 each. To provide additional incentive for managerial achievement, the options are not exercisable unless divisional revenue increases by 3% in five years. Suppose that after one year, Farmer estimates that it is not probable that divisional revenue will increase by 3% in five years. 1. What is the revised...
CHAPTER 19 (3.) On October 1, 2018, Farmer Fabrication issued stock options for 180,000 shares to...
CHAPTER 19 (3.) On October 1, 2018, Farmer Fabrication issued stock options for 180,000 shares to a division manager. The options have an estimated fair value of $5 each. To provide additional incentive for managerial achievement, the options are not exercisable unless divisional revenue increases by 5% in four years. Suppose that Farmer initially estimates that it is not probable the goal will be achieved, but then after one year, Farmer estimates that it is probable that divisional revenue will...
AC313 Return to question Brief Exercise 19-9 Performance-based options (LO19-2] 1.9 points On January 1, 2018,...
AC313
Return to question Brief Exercise 19-9 Performance-based options (LO19-2] 1.9 points On January 1, 2018, Farmer Fabrication issued stock options for 380,000 shares to a division manager. The options have an estimated fair value of $9 each. To provide additional incentive for managerial achievement, the options are not exercisable unless divisional revenue increases by 3% in five years. Suppose that after one year, Farmer estimates that it is not probable that divisional revenue will increase by 3% in five...
Exercise 19-17 EPS; stock dividend; nonconvertible preferred stock; treasury shares; shares sold; stock options [LO19-5, 19-6,...
Exercise 19-17 EPS; stock dividend; nonconvertible preferred stock; treasury shares; shares sold; stock options [LO19-5, 19-6, 19-7, 19-8] On December 31, 2017, Berclair Inc. had 300 million shares of common stock and 4 million shares of 9 % , $100 par value cumulative preferred stock issued and outstanding. On March 1, 2018, Berclair purchased 64 million shares of its common stock as treasury stock Berclair issued a 5% common stock dividend on July 1, 2018. Four million treasury shares were...
On January 1, 2018, Hugh Morris Comedy Club (HMCC) granted 1.2 million stock options to key...
On January 1, 2018, Hugh Morris Comedy Club (HMCC) granted 1.2 million stock options to key executives exercisable for 1.2 million shares of the company’s common stock at $24 per share. The stock options are intended as compensation for the next three years. The options are exercisable within a four-year period beginning January 1, 2021, by the executives still in the employ of the company. No options were terminated during 2018. The market price of the common stock was $28...
On January 1, 2018, Hugh Morris Comedy Club (HMCC) granted 1.5 million stock options to key...
On January 1, 2018, Hugh Morris Comedy Club (HMCC) granted 1.5 million stock options to key executives exercisable for 1.5 million shares of the company’s common stock at $24 per share. The stock options are intended as compensation for the next three years. The options are exercisable within a four-year period beginning January 1, 2021, by the executives still in the employ of the company. No options were terminated during 2018. The market price of the common stock was $28...
On January 1, 2018, Hugh Morris Comedy Club (HMCC) granted 1.2 million stock options to key executives exercisable for 1...
On January 1, 2018, Hugh Morris Comedy Club (HMCC) granted 1.2 million stock options to key executives exercisable for 1.2 million shares of the company’s common stock at $20 per share. The stock options are intended as compensation for the next three years. The options are exercisable within a four-year period beginning January 1, 2021, by the executives still in the employ of the company. No options were terminated during 2018. The market price of the common stock was $23...
Brief Exercise 19-5 Stock options; forfeitures On January 1, 2018, Hugh Morris Comedy Club (HMCC) granted 1.5 million st...
Brief Exercise 19-5 Stock options; forfeitures On January 1, 2018, Hugh Morris Comedy Club (HMCC) granted 1.5 million stock options to key executives exercisable for 1.5 million shares of the company’s common stock at $25 per share. The stock options are intended as compensation for the next three years. The options are exercisable within a four-year period beginning January 1, 2021, by the executives still in the employ of the company. No options were terminated during 2018. The market price...
On October 1, 2018, Farmer Fabrication issued stock options for 340,000 shares to a division manager. The options have an estimated fair value of $6 each. To provide additional incentive for managerial achievement, the options are not exercisable unless divisional revenue increases by 5% in five years. Suppose that Farmer initially estimates that it is not probable the goal will be achieved, but then after one year, Farmer estimates that it is probable that divisional revenue will increase by 5%...
Brief Exercise 19-9 Performance-based options (LO19-2] On January 1, 2018, Farmer Fabrication issued stock options for 380,000 shares to a division manager. The options have an estimated fair value of $9 each. To provide additional incentive for managerial achievement, the options are not exercisable unless divisional revenue increases by 3% in five years. Suppose that after one year, Farmer estimates that it is not probable that divisional revenue will increase by 3% in five years. 1. What is the revised...
AC313
Return to question Brief Exercise 19-9 Performance-based options (LO19-2] 1.9 points On January 1, 2018, Farmer Fabrication issued stock options for 380,000 shares to a division manager. The options have an estimated fair value of $9 each. To provide additional incentive for managerial achievement, the options are not exercisable unless divisional revenue increases by 3% in five years. Suppose that after one year, Farmer estimates that it is not probable that divisional revenue will increase by 3% in five...
Exercise 19-17 EPS; stock dividend; nonconvertible preferred stock; treasury shares; shares sold; stock options [LO19-5, 19-6, 19-7, 19-8] On December 31, 2017, Berclair Inc. had 300 million shares of common stock and 4 million shares of 9 % , $100 par value cumulative preferred stock issued and outstanding. On March 1, 2018, Berclair purchased 64 million shares of its common stock as treasury stock Berclair issued a 5% common stock dividend on July 1, 2018. Four million treasury shares were...
Most questions answered within 3 hours.
-
The blues made its way into many kinds of music. Eric Clapton,
The Beatles, and Elvis...
asked 1 hour ago -
8. A wave in a string has a wave function given by: y (x, t) =...
asked 21 minutes ago -
If you’re standing at the bottom of a hill and asked to evaluate
it while being...
asked 2 hours ago -
1. Which region has taken the lead in the world of
e-waste handling?
a) European Union...
asked 2 hours ago -
A 8.15- g bullet from a 9-mm pistol has a velocity of 366.0 m/s.
It strikes...
asked 3 hours ago -
The outstanding bonds of Alpha Extracts have a yield to maturity
of 7.4 percent and a...
asked 3 hours ago -
The Problem: The Case of the Harmonizing Vacations
Your CEO is exploring partnering with a European...
asked 5 hours ago -
A chemical equation is balanced by adding coefficients in front
of some formulas so that the...
asked 4 hours ago -
From the literature (reference your sources): What are the
lattice parameters of calcite and aragonite? Why...
asked 5 hours ago -
Your system is rejecting the question am asking which is
preceded by a case study. It...
asked 5 hours ago -
3. On January 2, 2000, Larry creates a trust with himself as
trustee. Larry as trustee...
asked 5 hours ago -
A member of the volleyball team spikes the ball. During this
process, she changes the velocity...
asked 5 hours ago