12. Jane Company has granted 200 share appreciation rights to each of its 300 employees on January 1, 2012. The rights are due to vest on December 31, 2013, with payment being made on December 31, 2014. During the year 2012, the company estimated that all options would vest; although only 90% of the options actually vested. Share prices are listed in the table below. What liability will be recorded on December 31, 2012 as a result of the share appreciation rights? January 1, 2012 P20 December 31, 2012 24 December 31, 2013 27 December 31, 2014 30 a. P108,000 b. P120,000 O c. P189,000 O d. P270,000 O e. Po

12. Jane Company has granted 200 share appreciation rights to each of its 300 employees on January 1, 2012. The rights are due to vest on December 31, 2013, with payment being made on December 31, 2014. During the year 2012, the company estimated that all options would vest; although only 90% of the options actually vested. Share prices are listed in the table below. What liability will be recorded on December 31, 2012 as a result of the share appreciation rights? January 1, 2012 P20 December 31, 2012 24 December 31, 2013 27 December 31, 2014 30 a. P108,000 b. P120,000 O c. P189,000 O d. P270,000 O e. Po

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter20: Financing With Derivatives

Section: Chapter Questions

Problem 12P

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Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par value common stock at 15 per share (400,000 shares were authorized). During the period January 1, 2014, through December 31, 2019, Kent reported net income of 750,000 and paid cash dividends of 380,000. On January 5, 2019, Kent purchased 12,000 shares of its common stock at 12 per share. On December 28, 2019, 8,000 treasury shares were sold at 8 per share. Kent used the cost method of accounting for treasury shares. What is Kents total shareholders equity as of December 31, 2019? a. 3,290,000 b. 3,306,000 c. 3,338,000 d. 3,370,000
Jane Company has granted 200 share appreciation rights to each of its 300 employees on January 1, 2016. The rights are due to vest on December 31, 2017, with payment being made on December 31, 2018. During the year 2016, the company estimated that all options would vest; although only 90% of the options actually vested. Share prices are as follows: January 1, 2016 P20 December 31, 2016 24 December 31, 2017 27 December 31, 2018 301. What liability will be recorded on December 31, 2016 as a result of the share appreciation rights? 2. How much compensation expense should be recorded for the year ended December 31, 2017?
Drake Company has granted 200 share appreciation rights to each of its 300 employees on January 1, 2016. The rights are due to vest on December 31, 2017, with payment being made on December 31, 2018. During the year 2016, the company estimated that all options would vest, although only 90% of the options actually vested. Share prices are as follows: January 1, 2016. P20 December 31, 2016. 24 December 31, 2017. 27 December 31, 2018. 30 1. What liability will be recorded on December 31, 2016 as a result of the share appreciation rights? 2. How much compensation expense should be recorded for the year ended December 31, 2017?
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Rome Inc. acquired 50,000 ordinary shares of Egypt Company at P120 per share. On February 14, 2020, Rome Inc. received 50,000 stock rights entitling it to buy one new share at P90 for every two rights held. On February 14, 2020, the market value of each share is P130 while that of each right is P20. On March 1, 2020, all the stock rights were exercised. If share rights are accounted for separately, what is the total cost of the new investment in ordinary shares acquired?
7. ABC Company and XYZ Company have announced terms of an exchange agreement under which ABC will issue 10,000 shares of its P5 par value ordinary shares to acquire all of XYZ’s assets. ABC’s shares are trading at P28, and XYZ’s P10 par value shares are trading at P15. Historical cost and fair value statement of financial position data on January 1, 2021, are as follows: (see image below) Based on the information provided, what amount will be reported for Ordinary Share in the combined company’s statement of financial position immediately following the business combination?
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On January 1, 2021, Cream Company offered the c share appreciation rights. The terms are predetermined price P100, 10,000 shares, vesting period 3 years and expiration date, December 31, 2023. The share appreciation is to be paid on the date of exercise. The following are the share prices: January 1, 2021 100 December 31, 2021 105 December 31, 2022 95 December 31, 2023 105 How much is the liability for December 31, 2022?