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Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
ISBN: 9781337788281

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BuyFindarrow_forward

Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
ISBN: 9781337788281
Textbook Problem
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Under the fair value method, how does a corporation determine the total compensation cost for a share-based compensation plan? How does it recognize this amount as compensation expense?

To determine

Explain the manner a corporation calculates the total compensation costs for a share-based compensation plan under the fair value method and identify the way it recognizes this amount as a compensation expense.

Explanation

Fair value method: under this method, stock based compensation plans are measured based on the fair value of the stock vested.

A corporation measures the total compensation costs for a share-based compen...

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