What amount should be recognized as gain on reversal of share appreciation rights in 2021? *see attached a. 1,600,000 b. 1,200,000 c. 400,000 d. 0
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What amount should be recognized as gain on reversal of share appreciation rights in 2021?
*see attached
a. 1,600,000
b. 1,200,000
c. 400,000
d. 0
Step by step
Solved in 2 steps
- On January 1, 2020, GALANTY Company granted XYZ, its president 20,000 share appreciation rights for past services. These rights are exercisable immediately and expire on January 1, 2022. During exercise, XYZ is entitled to receive cash for the excess of the share market price on the exercise date over the market price on the grant date. XYZ did not exercise any of the rights during 2020. The market price of GALANTY’s share was P30 on January 1, 2020 and P45 on December 31, 2020. As a result of the share appreciation rights, GALANTY should recognize compensation expense for 2020 of?a. 0b. 100,000c. 300,000d. 600,000e. answer not givenOn January 1, 2020, GALANTY Company granted XYZ, its president 20,000 share appreciation rights for past services. These rights are exercisable immediately and expire on January 1, 2022. During exercise, XYZ is entitled to receive cash for the excess of the share market price on the exercise date over the market price on the grant date. XYZ did not exercise any of the rights during 2020. The market price of GALANTY's share was P30 on January 1, 2020 and P45 on December 31, 2020. As a result of the share appreciation rights, GALANTY should recognize compensation expense for 2020 of? * O 100,000 300,000 О 600,000 O answer not givenOn January 1, 2020, GALANTY Company granted XYZ, its president 20,000 share appreciation rights for past services. These rights are exercisable immediately and expire on January 1, 2022. During exercise, XYZ is entitled to receive cash for the excess of the share market price on the exercise date over the market price on the grant date. XYZ did not exercise any of the rights during 2020. The market price of GALANTY’s share was P30 on January 1, 2020 and P45 on December 31, 2020. As a result of the share appreciation rights, GALANTY should recognize compensation expense for 2020 of?
- On January 1, 2020, DEF Co. granted its president 50,000 share appreciation rights. The rights are exercisable immediately and expire on December 31, 2021. On exercise, the president is entitled to receive cash for the excess of the share market price on exercise date over the market price on grant date. The president did not exercise any of the rights in 2020. The market price of the share was P100 on January 1, 2020 and P115 on December 31, 2021. The president exercised the rights on December 31, 2021 when the market price was P110. As a result of the share appreciation rights, FAITH Co. shall recognize gain on reversal of share appreciation rights in 2021 at?On January 1, 2020, MALTEZER Company granted the president, 20,000 share appreciation rights for past services. Those rights are exercisable immediately and expire on January 1, 2023. On exercise, the grantee is entitled to receive cash for the excess of the market price on the exercise date over the market price on the grant date. The grantee did not exercise any of the rights in 2020. The market price of share was ₱30 on January 1, 2020 and ₱45 on December 31, 2020. What amount should be recognized as compensation expense for 2020?Lion Company granted 30,000 share appreciation rights which entitled key employees to receive cash equal to the difference between P20 and the market price of the share on the date each right is exercised. The service period is 2019 through 2021, and the rights are exercisable in 2022. The market price of the share was P25 and P28 on December 31, 2019 and 2020, respectively. How much should be recorded as compensation expense for 2020?
- On January 1, Year 1, Hotdog Inc. granted the president 50,000 share appreciation rights for past service. These rights are exercisable immediately and expire on December 31, Year 2. On exercise date, the president is entitled to receive cash for the excess of the share market price over the share market price on the grant date. The president did not exercise any of the rights during Year 1. The market price of the share was P100 on January 1, Year 1 and P115 on December 31, Year 1. The grantee exercised the rights on December 31, Year 2 when the market price was P110. As a result of the share appreciation rights, what amount should be recognized as gain on reversal of share appreciation rights in Year 2? A. 500,000 B. 250,000 C. 750,000 D. 0In order to boost the sales of Leila & Co., the board of directors approved a share appreciation plan for its Chief Operating Officer. The plan was granted on January 1, 2020 and is exercisable for one year beginning January 1, 2022, provided that the COO is still employed at the date of its exercise. The plan compensates the COO for a cash payment equal to the excess of Leila’s share price over the pre-determined price of P50. Equivalent shares to be granted will be dependent upon the level of annual sales of the company on the date of exercise, as follows:· 100 million to 200 million sales: 10,000 shares· Over 200 million sales: 12,000 sharesActual sales achieved by Leila, and the share price of the company’s shares at the end of each year are below (SEE PICTURE BELOW):How much should the company recognized as compensation expense for 2020 and 2021, respectively? a. 135,000 ; 165,000 b. 270,000 ; 30,000 c. 385,000 ; 515,000 d. 770,000 ; 900,000Lion Company granted 30,000 share appreciation rights which entitled key employees to receive cash equal to the difference between P20 and the market price of the share on the date each right is exercised. The service period is 2019 through 2021, and the rights are exercisable in 2022. The market price of the share was P25 and P28 on December 31, 2019 and 2020, respectively. How much should be recorded as compensation expense for 2020? Copenhagen Company granted 200 share appreciation rights to each of the 500 employees on January 1, 2016. The rights are due to vest on December 31, 2019 with payment being made on December 31, 2020. Only 80% of the awards vest. January 1, 2016 (predetermined price)150 December 31, 2016 : 180 December 31, 2019 : 210 December 31, 2020 : 190 What amount should be recognized as gain on reversal of share appreciation rights on December 31, 2020?
- Gold Company granted 30,000 share appreciation rights which entitled key employees to receive cash equal to the difference between P200 and the market price of the share on the date each right is exercised. The service period is 2022 through 2024 and the rights are exercisable in 2025. The market price of the share was P250 and P280 on December 31, 2022 and 2023, respectively. What amount should Gold Company report as liability under the share appreciation rights on December 31, 2023?ANSWER: 1,600,000 Please kindly show solution. ThanksShe Company granted 200 share appreciation rights to each of the 1,000 employees on January 1, 2021. The management estimated that 90% of the awards shall vest on December 31, 2023. The fair value of each share appreciation rights on December 31, 2021 is P10. What amount should be reported as accrued liability for the share appreciation rights on December 31, 2022?On January 1, 2021, an entity grants five employees 1,000 share options as compensation for their commendable past performance. The share options are exercisable immediately at an exercise price of ₱70, but will expire after two years' time. The fair value per option on grant date is ₱60. As of year-end, no employee has yet exercised its share option. How much is the salaries expense of the year ended January 1, 2021?