INT.ACCT. LL W/CONNECT+PROCTORIO PLUS
10th Edition
ISBN: 9781266374395
Author: SPICELAND
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 19, Problem 19.20Q
(Based on Appendix B) LTV Corporation grants SARs to key executives. Upon exercise, the SARs entitle executives to receive either cash or stock equal in value to the excess of the market price at exercise over the share price at the date of grant. How should LTV account for the awards?
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
LTV Corporation grants SARs to key executives. Upon exercise, the SARs entitle executives to receive either cash or stock equal in value to the excess of the market price at exercise over the share price at the date of grant. How should LTV account for the awards?
Matching Type. Choose the correct answer in the box provided.
It entitles an employee to receive cash which is equal to the excess of market value of the entity's share over a pre-determined price for a stated number of shares. *
These are actually deferred cash dividends. *
It is a kind of appropriation for retained earnings supported by the trust fund doctrine. *
Matching Type. Choose the correct answer in the box provided.
These are distributions of the earnings of the corporation in the form of the corporation's own shares. *
It is the procedure of restating assets, liabilities and share capital balances at its fair value for the purpose of eliminating deficit. *
Share option is the best example of this kind of share-based compensation plan. *
The date the liability for dividends must be recognized *
Chapter 19 Solutions
INT.ACCT. LL W/CONNECT+PROCTORIO PLUS
Ch. 19 - Prob. 19.1QCh. 19 - Prob. 19.2QCh. 19 - The Tax Code differentiates between qualified...Ch. 19 - Stock option (and other share-based) plans often...Ch. 19 - What is a simple capital structure? How is EPS...Ch. 19 - Prob. 19.6QCh. 19 - Blake Distributors had 100,000 common shares...Ch. 19 - Why are preferred dividends deducted from net...Ch. 19 - Prob. 19.9QCh. 19 - The treasury stock method is used to incorporate...
Ch. 19 - The potentially dilutive effect of convertible...Ch. 19 - How is the potentially dilutive effect of...Ch. 19 - Prob. 19.13QCh. 19 - If stock options and restricted stock are...Ch. 19 - Wiseman Electronics has an agreement with certain...Ch. 19 - Prob. 19.16QCh. 19 - When the income statement includes discontinued...Ch. 19 - Prob. 19.18QCh. 19 - Prob. 19.19QCh. 19 - (Based on Appendix B) LTV Corporation grants SARs...Ch. 19 - Prob. 19.1BECh. 19 - Prob. 19.2BECh. 19 - Prob. 19.14BECh. 19 - Prob. 19.15BECh. 19 - Prob. 19.10ECh. 19 - EPS; concepts; terminology LO195 through LO1913...Ch. 19 - FASB codification research LO192 The FASB...Ch. 19 - Prob. 19.28ECh. 19 - Communication Case 1911 Dilution LO199 I thought...Ch. 19 - Prob. 19.12DMP
Additional Business Textbook Solutions
Find more solutions based on key concepts
This year, Prewer Inc. received a 160,000 dividend on its investment consisting of 16 percent of the outstandin...
Principles Of Taxation For Business And Investment Planning 2020 Edition
List five asset accounts, three liability accounts, and five expense accounts included in the acquisition and p...
Auditing And Assurance Services
Preparing Financial Statements from a Trial Balance The following accounts are taken from Equilibrium Riding, I...
Fundamentals of Financial Accounting
Calculate profit margin on sales ratio. (LO 5). Suppose a firm had sales of $200,000 and net income of $7,000 f...
Financial Accounting
Adjusting Journal Entries; Adjusted Trial Balance. Magic Cleaning Services (MCS) has a fiscal year-end of Decem...
Intermediate Accounting (2nd Edition)
How would the decision to dispose of a segment of operations using a split-off rather than a spin-off impact th...
Advanced Financial Accounting
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Please answer the multiple choice questions with only simple explanation. Thankyou! 6.) Assets or services acquired by a corporation in exchange for shares of stock should be recorded at: the book value of the stock at the time of the transaction the difference between the historical cost of the assets or services received and the amount of cash paid out as a result of the transaction the historical cost of the assets or services received less any cash received as a result of the transaction the fair market value of the assets or services received 7.) Which of the following regarding the conversion of preferred stock into common stock is true? gains resulting from a conversion are recognized and losses resulting from a conversion are not recognized losses resulting from a conversion are recognized and gains resulting from a conversion are not recognized both gains and losses from a conversion are not recognized…arrow_forwardWhich of the following statements related to dividends is incorrect? O Dividends must be paid in the period declared. O Before declaring a dividend, management must consider availability of funds to pay the dividend. O Distributions to owners must be in compliance with the state laws. O Dividends must be declared by the Board of Directors.arrow_forwardWhich of the following represents one of the basic rights of stockholders? a. Stockholders may sell their stock back to the company if they wish. b. Stockholders may authorize a business contract on behalf of the corporation. c. Stockholders may determine at what price the company issues stock. d. Stockholders may participate in management by voting on corporate matters.arrow_forward
- When a company retires its own common shares, the company must a. decrease the common share account balances by the original issue price. b. record a gain or loss depending on the difference between original selling price and repurchase cost. c. get the approval of the government to do so. d. issue a different class of shares to the former shareholders.arrow_forwardThe date of record is the date: Group of answer choices A)On which the board of directors of a corporation decides that a dividend will be paid. b)Used to determine exactly who will receive dividends. C)When cash is actually paid to the shareholders. D)When profits are declared. E)None of the abovearrow_forward11. What shall be the proper treatment of donated shares from stockholders? Group of answer choices a. They shall be credited to share premium at cost at the date of donation. b. They shall be credited to share premium at fair value at the date of donation. c. They shall be credited to share premium at par value at the date of donation. d. They are recorded by memorandum entry at the date of donation but the reissue or resale of donated shares increases assets and donated capital from share premium.arrow_forward
- Which of the following is not a component of the formula used to distribute profit? * After all other allocations, the remainder divided according to the profit and loss sharing ratio Salary allowances to the managing partners Interest on the average capital investment Interest on notes to partners A corporation whose stock can be purchased by anyone and is traded in stock markets is known as a(n) * Government-owned corporation Close corporation Open corporation O Not-for-profit corporationarrow_forwardThe pre-emptive right of common shareholders is defined as the right: a. to receive cash dividends before preferred shareholders. b. to participate proportionally in the corporate assets in the event of a liquidation. c. to participate proportionally in any new issuance of common shares.arrow_forward24. What shall be the proper treatment of donated shares from stockholders? Group of answer choices They shall be credited to share premium at cost at the date of donation. They shall be credited to share premium at fair value at the date of donation. They shall be credited to share premium at par value at the date of donation. They are recorded by memorandum entry at the date of donation but the reissue or resale of donated shares increases assets and donated capital from share premium.arrow_forward
- which of the following is a control right? shareholders right to elect the members of the board of directors and to receive the remaining liquidated value of assets shareholders rights to receive the remaining liquidated value of assets shareholders right to elect the members of the board of directors bondholders right to receive interest paymentsarrow_forwardWhich one of the following is the date on which the board of directors agrees to pay a dividend and passes a resolution to do so? Ex-dividend date Payment Date Declaration Date Date of recordarrow_forwardWhen a share-based payment transaction is with an employee and others providing similar services, the goods or services received are measured at thea. fair value of the equity instrument issuedb. intrinsic value a. a or b at the option of the entity b. b c. a d. a if determinable, otherwise, b 2. If there are no vesting conditions, the fair value of employee share options is recognized as expense, and an increase in a. equity at grant date b. liability over the vesting period c. liability at grant date d. equity over the vesting period 3. If there is a vesting period, the fair value of employee share appreciation rights is recognized as expense and an increase in a. liability at grant date b. equity at grant date c. liability over the vesting period d. equity over the vesting periodarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
Dividend explained; Author: The Finance Storyteller;https://www.youtube.com/watch?v=Wy7R-Gqfb6c;License: Standard Youtube License