On January 1, 2021, 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, 2024, by the executives still in the employ of the company. No options were terminated during 2021. The market price of the common stock was $23 per share at the date of the grant. HMCC estimated the fair value of the options at $12 each. 1% of the options are forfeited during 2022 due to executive turnover.   What amount should HMCC record as compensation expense for the year ended December 31, 2022, assuming HMCC chooses the option to record forfeitures as they actually occur? (Enter your answer in whole dollars.)

In order to retain certain key executives, Wildhorse Corporation granted them incentive stock options on December 31, 2024. A total of 152000 options were granted at an option price of $35 per share. Market prices of the stock were as follows: December 31, 2025 December 31, 2026 The options were granted as compensation for executives' services to be rendered over a two-year period beginning January 1, 2025. The Black-Scholes option-pricing model determined total compensation expense to be $1501000. $44 per share 49 per share What amount of compensation expense should Wildhorse recognize as a result of this plan for the year ended December 31, 2025 under the fair value method? O $750500 $1653000 $1501000 $2622950

JBL Aircraft manufactures and distributes aircraft parts and supplies. Employees are offered a variety of share-based compensation plans. Under its nonqualified stock option plan, JBL granted options to key officers on January 1, 2021. The options permit holders to acquire 9 million of the company's $1 par common shares for $30 within the next six years, but not before January 1, 2024 (the vesting date). The market price of the shares on the date of grant is $34 per share. The fair value of the 9 million options, estimated by an appropriate option pricing model, is $6 per option. Because the plan does not qualify as an incentive plan, JBL will receive a tax deduction upon exercise of the options equal to the excess of the market price at exercise over the exercise price. The tax rate is 25%.Required:1. Determine the total compensation cost pertaining to the incentive stock option plan.2. Prepare the appropriate journal entries to record compensation expense and its tax effect on…

On January 1, 2024, Jingrong Corporation granted stock options to key employees for the purchase of 81,000 shares of the company's common stock at $28 per share. The options are intended to compensate employees for the next two years. The options are exercisable within a four-year period beginning January 1, 2026, by the grantees still in the employ of the company. No options were terminated during 2024, but the company does have an experience of 6% forfeitures over the life of the stock options. The market price of the common stock was $34 per share at the date of the grant. Jingrong Corporation used the Binomial pricing model and estimated the fair value of each of the options at $10. What amount should Jingrong charge to compensation expense for the year ended December 31, 2024?   Multiple Choice   $405,000   $810,000   $380,700   $761,400

DaBaby Company issues 4,000 shares of restricted stock to its CFO, Stallion Megan, on January 1, 2020. The stock has a fair value of $120,000 on this date. The service period related to this restricted stock is 5 years. Vesting occurs if Fierce stays with the company for 5 years. The par value of the stock is $5. At December 31, 2021, the fair value of the stock is $135,000. On January 3, 2023, Megan leaves the company Prepare the journal entry to account for this forfeiture.

As part of its stock-based compensation package, International Electronics granted 12 million stock appreciation rights (SARs) to top officers on January 1, 2024. At exercise, holders of the SARs are entitled to receive cash or stock equal in value to the excess of the market price at exercise over the share price at the date of grant. The SARs cannot be exercised until the end of 2027 (vesting date) and expire at the end of 2029. The $1 par common shares have a market price of $48 per share on the grant date. The fair value of the SARs, estimated by an appropriate option pricing model, is $2.50 per SAR at January 1, 2024. The fair value re-estimated at December 31, 2024, 2025, 2026, 2027, and 2028, is $3.50, $2.50, $4, $2.50, and $4.00, respectively. All recipients are expected to remain employed through the vesting date. Required: 1. to 3. Prepare the appropriate journal entries pertaining to the SARs on January 1, 2024 and December 31, 2024–December 31, 2027. The SARs remain…

Pastner Brands is a calendar-year firm with operations in several countries. As part of its executive compensation plan, at January 1, 2021, the company issued 312,000 executive stock options permitting executives to buy 312,000 shares of Pastner stock for $32 per share. One-fourth of the options vest in each of the next four years beginning at December 31, 2021 (graded vesting). Pastner elects to separate the total award into four groups (or tranches) according to the year in which they vest and measures the compensation cost for each vesting date as a separate award. The fair value of each tranche is estimated at January 1, 2021, as follows: Vesting Date Dec. 31, 2021 Dec. 31, 2022 Dec. 31, 2023 Dec. 31, 2024 Shares Vesting at: Amount Vesting 25% 25% 25% 25% Dec. 31, 2021 Dec. 31, 2022 Dec. 31, 2023 Dec. 31, 2024 Total Assume Pastner prepares its financial statements using International Financial Reporting Standards (IFRS). Required: Determine the compensation expense related to the…

Ratio analysis "up and down" is applied from which of the following directions? a) vertical relationships b) external and internal relationships c) horizontal relationships O d) Show relationships between financial statement accounts Jay

On January 1, 2020, AllClear Company issues 2,000 shares of restricted stock to its CEO, Jason Skyline.  AllClear’s stock has a fair value of $30 per share on January 1, 2020. Additional information is as follows. The service period related to the restricted stock is five years. Vesting occurs if Skyline stays with the company for a five-year period. The par value of the stock is $10 per share.  Prepare journal entries relating to the restricted stock in 2020.  Assume that Jason Skyline leaves the company on April 1, 2021 (before any expense has been recorded during 2021). Prepare journal entry relating to the restricted stock in 2021, if necessary.

Isadore Bell Company granted 8 million of its no par common shares to executives, subject to forfeiture if employment is terminated within three years. The common shares have a market price of $3 per share on January 1, 2021, the grant date. When calculating diluted EPS at December 31, 2022, what will be the net increase in the denominator of the EPS fraction if the market price of the common shares averaged $4 per share during 2022?