The board of directors of an entity approved a share option plan for key executives. On January 1, 2021, 200,000 share options were granted exercisable for 200,000 ordinary shares of P10 par value. The options are exercisable between January 1, 2024 and December 31, 2026 at 80% of the quoted market price on January 1, 2021 which was P15. The fair value of the 200,000 options is P6 per option. Twenty thousand options were forfeited when an executive resigned in 2020. All other options were exercised on July 1, 2025 when the share price jumped unexpectedly to P19. What is the compensation expense for 2022?
Q: APOLONIO died leaving the following properties: • 2,500 shares of stocks of ABC Corporation, listed…
A: Gross estate refers to all of the assets used to calculate whether an estate is subject to federal…
Q: When a loss contingency is recognized, where is it reported on the income statement?
A: A financial statement that lists the company's earnings and expenses is called an income statement.…
Q: Suppose that General Motors Acceptance Corporation issued a bond with 10 years until maturity, a…
A: Bond price is the present discounted value of future cash stream generated by a bond. It refers to…
Q: Describe a situation that would require an auditor to give an unmodified opinion without a standard…
A: Introduction: Unmodified opinion generally gives when the financial statements showing as fairly. It…
Q: Exercise 20-25 (Algorithmic) (LO. 3) Townsend, the sole shareholder of Pruett Corporation, has a…
A: A capital gain is the increase in a capital asset's value and is realized when the asset is sold.…
Q: ent. (a) The expected appreciation rate on home price next year equals ______ percent. (Round to…
A: Appreciation rate refers to the rate or pace at which the value of an asset enhances over a course…
Q: is employer. Assume his modified AGI is $520,0 includes $2,000 of long-term capital gain that…
A: Taxable income refers to the sum value of money gained by an entity that is subject to a compulsory…
Q: Due in 9/19 in class Prepare a multiple-step income statement for 2024, excluding EPS disclosures.…
A: Income Statement :— It is one of financial statement that shows profitability of company during the…
Q: Jackie is single and has taxable income of $34,275 without considering the sale of a capital asset…
A: Capital Gain is the gain on selling of capital asset during the year, there are two types of capital…
Q: 1. Is she risk averse, risk neutral, or risk loving? Explain. 2. Write out the equation for her…
A: SOLUTION:- 1. u(I)=I 0.7 R(A)= -(UI /UII ) R(A) >0 THEREFORE she is risk averse because…
Q: Question: What are payroll internal controls? briefly discuss.
A: Internal controls refer to those measures which helps in effective and smooth running of the…
Q: Bowman Company manufactures cooling systems. Bowman produces all the parts necessary for its product…
A: ACTIVITY BASED COSTING A powerful tool for measuring performance, Activity-Based Costing (ABC)…
Q: Question: a) when business sells goods on credit, there is a decrease in cash. reqiured: please…
A: The selling process is the company's regular procedure and its primary activity because it is…
Q: 1 On January 1st 2015, The Bond James Bond (BJB) Company purhcased all of the voting stock of the…
A:
Q: Question 9 What is the amount of a Php5,000 ordinary annuity payable every six months at 9%…
A: Time value of money refers to the concept stating that the worth of money in present times is more…
Q: On January 1, 2020, Beckham acquired a 2,000,000, 5 year bond, 10% bond for 2,169,329. Transaction…
A: FVPL (fair value through profit or loss) is the default treatment for investments where transaction…
Q: In the process of reconciling its bank statement for January, Maxi's Clothing's accountant compiles…
A: A bank reconciliation statement is prepared by the management to match the company's cash balance…
Q: Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and…
A: FIFO means First In, First Out. Under this method goods purchased first are sold first. LIFO means…
Q: Creative Solutions Company, a computer consulting firm, has decided to write off the $15,220 balance…
A: Accounts receivables is the amount to be received within a year. Accounts receivables is a current…
Q: Assume that the following was extracted from Massy's accounting information system for operations at…
A: Working :- 1) Calculation of gross profit :- (Sales - sales returns) * 40% = ($830,000 - $42,000)…
Q: Basil Corporation has three costs: A, which is variable; B, which is fixed; and C, which is…
A: Answer : Cost A per hour ($2,610,000/180,000) $14.50 Cost C Fixed portion ($1.75*200,000)…
Q: Explain the presentation of a multiple-step income statement. BE5.9 (LO.5), C Writing Explain where…
A:
Q: Mr. Boyd and Ms. Tuck decide to form a new corporation named BT Inc. Mr. Boyd transfers $20,000…
A: As per the given information: Cash transferred - $20,000 Equipment - FMV $40,000; Adjusted tax basis…
Q: Required information A potential investment has a cost of $350,000 and a useful life of 4 years.…
A: The question is based on the concept of Financial Management. FV of the investment is the present…
Q: Requirement 1. Prepare a comparative common-size income statement for Mariner Designs, Inc. using…
A: COMPARATIVE INCOME STATEMENT Comparative income statements which show a company's income…
Q: Calculate (a) the amount financed, (b) the total finance charge, and (c) APR by table lookup.(Use…
A: INTRODUCTION: The annual Percentage Rate denotes the yearly cost of the loan and is given as a…
Q: For the following list of assets, identify each as being classified as tangible (T) or intangible…
A: Intangible assets are those assets that do not have physical existence or can not be touched like…
Q: Suppose that Stillwater Designs has two classes of distributors: JIT distributors and non-JIT…
A: Activity Based Costing :— Under this method, overhead is allocated between products on the basis of…
Q: A company's inventory records indicate the following data for the month of Apri Date April 1 April 7…
A: The question is based on the concept of Cost Accounting.
Q: The Caldwell Herald newspaper reported the following story: Frank Ormsby of Caldwell is the state's…
A: The question is based on the concept of Financial Management. Present value of the equal future cash…
Q: The following are exclusions from gross estate, which is not ? Transfer in contemplation of death…
A: The estate tax is imposed on the transfer of the decedent’s estate to his lawful heirs and…
Q: Troy Juth wants to purchase new dive equipment for Underwater Connection, his retail store in…
A: When a person or an entity or a company takes a loan then the bank or the financial institution…
Q: Mallory Corporation is being liquidated. On May 1, 20x5, you are appointed the court's trustee for…
A: Working Note - * Accounts Receivable Collected = 3/4 of 80,000…
Q: The management accountant of Mega Ltd, a local manufacturing firm, is currently preparing the…
A: Production Budget :— This budget is prepared to estimate the number of units produced or…
Q: Find the missing amounts, and be sure to label your Presented here are the components in Wildhorse…
A: INCOME STATEMENT Income Statement is one of the important financial statements of the Company.…
Q: (b) Stocks for Fumbeshi and Mundashi have the following historical returns:…
A: Average Rate of Return (ARR) refers to the percentage rate of return expected on investment or asset…
Q: Based on the information given above, identify the weaknesses in the internal controls over the…
A: Company sets certain rules and regulations and how those will work and how to operate under…
Q: In 2022, Britt drove her automobile 16,200 miles for business. She incurred $900 in gas expenses and…
A: The Internal Revenue Service has established the standard mileage rate as the default cost per mile…
Q: Calculate the total depreciation expense to be recorded on Machine #5027 for 2023.
A: Depreciation refers to the decrease in the value of a tangible asset over a period of time.…
Q: Required information (The following information applies to the questions displayed below.] Mason…
A: According to the given question, we are required to compute the deduction for qualified business…
Q: PROBLEM 11 GAVIAL, INC. sells electric stoves. It uses the perpetual inventory system and allocates…
A:
Q: A study was recently done in which 500 people were asked to indicate their preferences for one of…
A: Comment; We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: Global Corporation distributed property with an $850,000 fair market value and a $415,000 adjusted…
A: Dividend income is defined by the IRS as any distribution of an entity's property to its…
Q: Why are most decision makers particularly concerned about the amount of current liabilities reported…
A: A current liability is a debt that the company intends to pay off right away using resources that…
Q: You are about to interview at a company and want to get a good read of how much political behavior…
A: When analysing the company and its quantitative as well as qualitative factor it is important to…
Q: P5.1B (LO 2,4,5) (Various Time Value Situations) Answer each of these unrelated questions. a. On…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: 3 Joe Mama starts a new business. The following transactions occur: 1 2 3 4 5 6 7 8 9 10 11 1/1/21…
A: All transactions may be first recorded in the journal as and when they occur; the record is…
Q: Practice At the end of the year, D Company's balance in the allowance for uncollectible accounts…
A: Allowance for Uncollectable Amount Because it lowers the value of an asset—in this case, the…
Q: TRUE OR FALSE If an intangible asset is successfully defended from a legal challenge, the incurred…
A: The term "intangible assets" refers to assets without a physical form. Businesses that have made…
Q: Practice The company lent $5,000 on July 1, 20XA at 10% interest for 9 months. Determine interest…
A: Interest revenue is the amount of interest which is earned on the amount lent. It is calculated by…
The board of directors of an entity approved a share option plan for key executives. On January 1, 2021,
200,000 share options were granted exercisable for 200,000 ordinary shares of P10 par value. The options are exercisable between January 1, 2024 and December 31, 2026 at 80% of the quoted market price on January 1, 2021 which was P15. The fair value of the 200,000 options is P6 per option. Twenty thousand options were forfeited when an executive resigned in 2020. All other options were exercised on July 1, 2025 when the share price jumped unexpectedly to P19.
What is the compensation expense for 2022?
Step by step
Solved in 2 steps
- 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 for 2019 for this plan.On October 15, 2020, the board of directors of Ensor Materials Corporation approved a share option plan for key executives. On January 1, 2021, 20 million share options were granted, exer- cisable for 20 million shares of Ensor's $1 par ordinary share. The options are exercisable between January 1, 2024, and December 31, 2026, at 80% of the quoted market price on January 1, 2021, which was $15. The fair value of the 20 million options, estimated by an appropriate option pricing model, is $6 per option. Two million options were forfeited when an executive resigned in 2022. All other options were exercised on July 12, 2025, when the share's price jumped unexpectedly to $19 per share. Required: 1. When is Ensor's share option measurement date? 2. Determine the compensation expense for the share option plan in 2021. (Ignore taxes.) 3. What is the effect of forfeiture of the share options on Ensor's financial statements for 2022 and 2023? 4. Is this effect consistent with the general…On October 15, 2022, East Company approved a share option plan for key executives. On January 1, 2023, 200,000 share options were granted exercisable for 200,000 ordinary shares at P10 par value. The options are exercisable between January 1, 2026 and December 31, 2028, at 80% of the quoted market price on January 1, 2023 which was P15. The fair value of the 200,000 options estimated by an appropriate option pricing model is P6 per option. Twenty thousand options were forfeited when an executive resigned in 2024. All other options were exercised on July 1, 2026 when the share price jumped unexpectedly to P20.What amount should East Company credit to share premium upon exercise of options in 2026? 1,440,000 1,560,000 2,160,000 1,600,000
- On October 15, 2023, the board of directors of Martinez Materials Corporation approved a stock option plan for key executives. On January 1, 2024, 24 million stock options were granted, exercisable for 24 million shares of Martinez's $1 par common stock. • The options are exercisable between January 1, 2027, and December 31, 2029, at 80% of the quoted market price on January 1, 2024, which was $15. • The fair value of the 24 million options, estimated by an appropriate option pricing model, is $5 per option. • Martinez chooses the option to recognize forfeitures only when they occur. . Ten percent (2.4 million) of the options were forfeited when an executive resigned in 2025. • All other options were exercised on July 12, 2028, when the stock's price jumped unexpectedly to $23 per share. Required: 1. When is Martinez's stock option measurement date? 2. Determine the compensation expense for the stock option plan in 2024. (Ignore taxes.) 3. Prepare the journal entries to reflect the…On October 15, 2020, the board of directors of Ensor Materials Corporation approved a stock option plan for key executives. On January 1, 2021, 30 million stock options were granted, exercisable for 30 million shares of Ensor's $1 par common stock. The options are exercisable between January 1, 2024, and December 31, 2026, at 80% of the quoted market price on January 1, 2021, which was $25. The fair value of the 30 million options, estimated by an appropriate option pricing model, is $5 per option. Ensor chooses the option to recognize forfeitures only when they occur.Ten percent (3 million) of the options were forfeited when an executive resigned in 2022. All other options were exercised on July 12, 2025, when the stock’s price jumped unexpectedly to $29 per share.Required:1. When is Ensor’s stock option measurement date?2. Determine the compensation expense for the stock option plan in 2021. (Ignore taxes.)3. Prepare the journal entries to reflect the effect of forfeiture of the…On October 15, 2020, the board of directors of Ensor Materials Corporation approved a stock option plan for key executives. On January 1, 2021, 28 million stock options were granted, exercisable for 28 million shares of Ensor’s $1 par common stock. The options are exercisable between January 1, 2024, and December 31, 2026, at 90% of the quoted market price on January 1, 2021, which was $10. The fair value of the 28 million options, estimated by an appropriate option pricing model, is $6 per option. Ensor chooses the option to recognize forfeitures only when they occur. Ten percent (2.8 million) of the options were forfeited when an executive resigned in 2022. All other options were exercised on July 12, 2025, when the stock’s price jumped unexpectedly to $26 per share. Required: When is Ensor’s stock option measurement date? 2.Determine the compensation expense for the stock option plan in 2021. (Ignore taxes.) 3.Prepare the journal entries to reflect the effect of forfeiture of…
- On October 15, 2023, the board of directors of Martinez Materials Corporation approved a stock option plan for key executives. On January 1, 2024, 22 million stock options were granted, exercisable for 22 million shares of Martinez's $1 par common stock. • The options are exercisable between January 1, 2027, and December 31, 2029, at 80% of the quoted market price on January 1, 2024, which was $15. • The fair value of the 22 million options, estimated by an appropriate option pricing model, is $6 per option. • Martinez chooses the option to recognize forfeitures only when they occur. • Ten percent (2.2 million) of the options were forfeited when an executive resigned in 2025. • All other options were exercised on July 12, 2028, when the stock's price jumped unexpectedly to $21 per share. Required: 1. When is Martinez's stock option measurement date? 2. Determine the compensation expense for the stock option plan in 2024. (Ignore taxes.) 3. Prepare the journal entries to reflect the…On October 15, 2020, the board of directors of ABC Corporation approved a stock option plan for key executives. On January 1, 2021, 20 million stock options were granted, exercisable for 20 million shares of Ensors $1 par common stock. The options are exercisable between January 1, 2024, and December 31, 2026, at 80% of the quoted market price on January 1, 2021, which was $ 15. The fair value of the 20 million options, estimated by an appropriate option pricing model, is $6 per option. Ensor chooses the option to recognize forfeitures only when they occur.Ten percent (2 million) of the options were forfeited when an executive resigned in 2022. All other options were exercised on July 12, 2025, when the stocks price jumped unexpectedly to $19 per share.Required:1. When is ABCs stock option measurement date?2. Determine the compensation expense for the stock option plan in 2021. (Ignore taxes.)3. Prepare the journal entries to reflect the effect of forfeiture of the stock options on…Olde Corporation provides an executive stock option plan. Under the plan, the company granted options on January 1, 2024, that permit executives to acquire 3.9 million of the company's $1 par value common shares within the next five years, but not before December 31, 2025 (the vesting date). The exercise price is the market price of the shares on the date of the grant, $14 per share. The fair value of the options, estimated by an appropriate option pricing model, is $4 per option. No forfeitures are anticipated. Ignore taxes. Required: 1. Determine the total compensation cost pertaining to the options, assuming the fair value approach has been selected. 2. & 4. Prepare the appropriate journal entries (if any).
- On October 15, 2023, the board of directors of Martinez Materials Corporation approved a stock option plan for key executives. On January 1, 2024, 28 million stock options were granted, exercisable for 28 million shares of Martinez's $1 par common stock. The options are exercisable between January 1, 2027, and December 31, 2029, at 80% of the quoted market price on January 1, 2024, which was $15. The fair value of the 28 million options, estimated by an appropriate option pricing model, is $6 per option. Martinez chooses the option to recognize forfeltures only when they occur. Ten percent (28 million) of the options were forfelted when an executive resigned in 2025. All other options were exercised on July 12, 2028, when the stock's price jumped unexpectedly to $27 per share. Required: 1. When Is Martinez's stock option measurement date? 2. Determine the compensation expense for the stock option plan in 2024. (Ignore taxes.) 3. Prepare the journal entries to reflect the effect of…Olde Corporation provides an executive stock option plan. Under the plan, the company granted options on January 1, 2024, that permit executives to acquire 2.5 million of the company's $1 par value common shares within the next five years, but not before December 31, 2025 (the vesting date). The exercise price is the market price of the shares on the date of the grant, $13 per share. The fair value of the options, estimated by an appropriate option pricing model, is $2 per option. No forfeitures are anticipated Ignore taxes. Required: 1. Determine the total compensation cost pertaining to the options, assuming the fair value approach has been selected. 2. & 4. Prepare the appropriate journal entries (if any). Complete this question by entering your answers in the tabs below. Req 1 Reg 2 to 4 Determine the total compensation cost pertaining to the options, assuming the fair value approach has been selected. Note: Enter your answer in millions rounded to 2 decimal places (i.e., 5,500,000…On January 1, 2020, The Red Hot Company established a share option plan for its selected senior employees. A total of 30,000 options were granted that permit said employees to purchase 30,000 shares of P 20 par ordinary share capital at P 35 per share. Options are exercisable beginning on January 1,2023 and can be exercised anytime from January 1,2023 through December 31,2024.At January 1, 2020, the market price for the Red Hot Company share option was P 8, based on an option pricing model used by the entity. All, but 2,000 share options were exercised on December 31,2023.REQUIRED:a) Computation of compensation expense for years 2020, 2021 and 2022.b) Entries as a result of the foregoing for year 2020 through 2023, inclusive.