Intermediate Accounting
3rd Edition
ISBN: 9780136912644
Author: Elizabeth A. Gordon; Jana S. Raedy; Alexander J. Sannella
Publisher: Pearson Education (US)
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Question
Chapter 19, Problem 19.3P
a.
To determine
To calculate: The compensation cost to be recognized for the year and
Given Information:
Number of shares granted is 10.
Number of employees is 1,200.
Exercise price of the shares is $45.
Fair value at the grant date is $83.
Vesting period is 3 years.
Vesting probability is 100% in each year.
b.
To determine
The compensation expense for end of the year and journal entry of it.
Given Information:
Number of shares granted is 10.
Number of employees is 1,200.
Exercise price of the shares is $45.
Fair value at the grant date is $83.
Vesting period is 3 years.
Vesting probability is 80% in first year.
Vesting probability is 65% in second year.
Vesting probability is 75% in third year.
c.
To determine
The compensation expense for end of the year and journal entry of it.
Given Information:
Number of shares granted is 10.
Number of employees is 1,200.
Exercise price of the shares is $45.
Fair value at the grant date is $83.
Vesting period is 3 years.
Vesting probability is 80% in first year.
Vesting probability is 65% in second year.
Vesting probability is 75% in third year.
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On January 1, 2018, Choosy Co. granted to an employee the right to choose either shares or
cash payment. The choices are as follows:
• Share Alternative: Equal to 25,000 shares with par value of P40.
• Cash Alternative: Cash payment equal to the market value of 21,000 shares.
The grant is conditional upon the completion of three years of service. On the grant date, on
January 1, 2018, the share price P36. The share prices for the three year period are as
follows:
December 31, 2018
P46
December 31, 2019
P54
December 31, 2020
P60
After taking into account the effect of vesting restriction, Choosy Co. has estimated that the
fair value of the share alternative is P45.
1. What is the compensation to be recognized in December 31, 2018?
2. What is the compensation to be recognized in December 31, 2019?
3. What is the compensation to be recognized in December 31, 2020?
4. Assuming on December 31, 2020 the employee opted to receive the Cash Alternative, what is the share premium to be…
On January 1, Year 1, Lasagna Corporation granted to an employee the right to choose either shares or cash payment. The choices are as follows:
•Share alternative – equal to 25,000 shares with par value of P30 •Cash alternative – cash payment equal to the market value of 20,000 shares
The grant is conditional upon the completion of three years of service. On grant date, on January 1, Year 1, the share price is P51. The share prices for the three-year vesting period are P54 on December 31, Year 1, P66 on December 31, Year 2 and P65 on December 31, Year 3. After taking into account the effect of vesting restrictions, the entity has estimated that the fair value of the share alternative is P48.
What is the compensation expense for Year 3?
A. 480,000
B. 600,000
C. 580,000
D. 420,000
On January 1, Year 1, Lasagna Corporation granted to an employee the right to choose either shares or cash payment. The choices are as follows:
•Share alternative – equal to 25,000 shares with par value of P30 •Cash alternative – cash payment equal to the market value of 20,000 shares
The grant is conditional upon the completion of three years of service. On grant date, on January 1, Year 1, the share price is P51. The share prices for the three-year vesting period are P54 on December 31, Year 1, P66 on December 31, Year 2 and P65 on December 31, Year 3. After taking into account the effect of vesting restrictions, the entity has estimated that the fair value of the share alternative is P48.
What is the share premium if the employee has chosen the cash alternative on December 31, Year 3?
A. 730,000
B. 0
C. 700,000
D. 180,000
Chapter 19 Solutions
Intermediate Accounting
Ch. 19 - What is the allocation period used to expense...Ch. 19 - How do companies account for stock-based...Ch. 19 - Do companies with equity-based compensation plans...Ch. 19 - When accounting for employee stock options, will a...Ch. 19 - Prob. 19.5QCh. 19 - Prob. 19.6QCh. 19 - Prob. 19.7QCh. 19 - Prob. 19.8QCh. 19 - Prob. 19.9QCh. 19 - Prob. 19.10Q
Ch. 19 - Prob. 19.1MCCh. 19 - Prob. 19.2MCCh. 19 - Prob. 19.3MCCh. 19 - Prob. 19.4MCCh. 19 - Prob. 19.5MCCh. 19 - Prob. 19.6MCCh. 19 - Prob. 19.7MCCh. 19 - Prob. 19.8MCCh. 19 - Prob. 19.1BECh. 19 - Prob. 19.2BECh. 19 - Prob. 19.3BECh. 19 - Prob. 19.4BECh. 19 - Prob. 19.5BECh. 19 - Prob. 19.6BECh. 19 - Employee Stock Options, Liability-Classified...Ch. 19 - Prob. 19.8BECh. 19 - Prob. 19.9BECh. 19 - Prob. 19.10BECh. 19 - Prob. 19.11BECh. 19 - Prob. 19.12BECh. 19 - Prob. 19.13BECh. 19 - Prob. 19.14BECh. 19 - Prob. 19.15BECh. 19 - Prob. 19.16BECh. 19 - Prob. 19.17BECh. 19 - Prob. 19.18BECh. 19 - Prob. 19.19BECh. 19 - Prob. 19.20BECh. 19 - Prob. 19.21BECh. 19 - Prob. 19.22BECh. 19 - Prob. 19.23BECh. 19 - Prob. 19.24BECh. 19 - Prob. 19.25BECh. 19 - Prob. 19.26BECh. 19 - Prob. 19.27BECh. 19 - Prob. 19.28BECh. 19 - Prob. 19.1ECh. 19 - Prob. 19.2ECh. 19 - Employee Stock Options. Equity-Classified Awards....Ch. 19 - Prob. 19.4ECh. 19 - Prob. 19.5ECh. 19 - Prob. 19.6ECh. 19 - Prob. 19.7ECh. 19 - Prob. 19.8ECh. 19 - Prob. 19.9ECh. 19 - Prob. 19.10ECh. 19 - Prob. 19.11ECh. 19 - Prob. 19.12ECh. 19 - Prob. 19.13ECh. 19 - Prob. 19.14ECh. 19 - Prob. 19.15ECh. 19 - Prob. 19.16ECh. 19 - Prob. 19.1PCh. 19 - Prob. 19.2PCh. 19 - Prob. 19.3PCh. 19 - Prob. 19.4PCh. 19 - Prob. 19.5PCh. 19 - Prob. 19.6PCh. 19 - Prob. 19.7PCh. 19 - Prob. 19.8PCh. 19 - Prob. 19.9PCh. 19 - Prob. 19.10PCh. 19 - Prob. 19.11PCh. 19 - Prob. 19.12PCh. 19 - Prob. 1JCCh. 19 - Prob. 2FSCCh. 19 - Prob. 1SSCCh. 19 - Prob. 2SSCCh. 19 - Basis for Conclusions Case 1: Are Employee Stock...Ch. 19 - Prob. 2BCC
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