INTERMEDIATE ACCOUNTING
10th Edition
ISBN: 9781264046249
Author: SPICELAND
Publisher: MCG
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Chapter 19, Problem 19.2BE
To determine
Restricted stock: These are the share-based awards provided as compensation plans provided as incentives to the employees which include right to receive the shares and are restricted to employees’ extended tenure. The two variants of restricted stock are restricted stock awards, and restricted stock units.
Restricted stock units (RSUs): RSU is a right of the employee to receive a certain number of shares of stock of the company as a performance incentive, or usual compensation, or signing bonus.
To determine: The compensation cost of RSUs, and mention the effect of granted shares on the earnings
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Item3 Item 3 Feldmann Corporation permits any of its employees to buy shares directly from the company through payroll deduction. There are no brokeragefees and shares can be purchased at a 10% discount. During 2024, employees purchased 26 million shares; during this same period, the shares had a marketprice of S20 per share at the end of the year. Feldmann's 2024 pretax earnings will be reduced by: Multiple Choice S52 million. S468 million. S520 million. SO .
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Exercise 19-22 (Static) EPS; restricted stock (LO19-11]
As part of its executive compensation plan, Vertovec Inc. granted 54,000 of its no-par common shares to executives, subject to
forfelture if employment is terminated within three years. Vertovec's common shares have a market price of $5 per share on January 1,
2020, the grant date of the restricted stock award, as well as on December 31, 2021. 800,000 shares were outstanding at January 1,
2021. Net income for 2021 was $120,000.
Required:
Compute Vertovec's basic and diluted earnings per share for the year ended December 31, 2021. (Enter your answers In thousands.)
Numerator
Denominator
Earnings per Share
Basic
Diluted
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39. D On January 1, 2019, Caraga Company purchased equity securities to be held as financial
assets measured at fair value through other comprehensive income.
Market – 12/31/19
3,200,000
3,500,000
4,600,000
Market 12/31/2020
Security R
Security S
Security T
Cost
3,000,000
4,000,000
5,000,000
3,700,000
4,700,000
On January 31, 2020, the entity sold Security R for P3,500,000.
What amount should be recognized directly in retained earnings of as a result of the sale of
investment in 2020?
a. 500,000
b. 300,000
c. 200,000
d. 0
Chapter 19 Solutions
INTERMEDIATE ACCOUNTING
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
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- Problem 25-19 (IFRS) Years. The agreement reguired the entity to pay cash based Precember 31, 2021, Jester Company modified the agreemént and canceled the 50.000 share appreciation rights. Instead, Jester Company granted 50,000 share options provided Chat the employees remain with the entity for the next two years. On this date, the fair value of the share option is P7o. 2020 and P130 on December 31, 2021. BWo-year period. The option price is P110 and the par value is P100. The options are exercisable at the end of the remaining On December 31, 2023, only 40,000 share options were exercised and 10,000 options were forfeited. 1. What is the compensation expense for 2020? а. 250,000 b. 500,000 400,000 d. 300,000 с. 2. What is the compensation expense for 2021? 1,000,000 b. 1,500,000 750,000 500,000 a. с. d. 3. What is the compensation expense for 2022? a. 2,625,000 b. 1,750,000 875,000 d. C. 500,000 What is the compensation expense for 2023? 2,800,000 b. 2,400,000 900,000 d. a. с.…arrow_forward"The general assembly of the ABC Public Shareholding Company decided to distribute the net profit of the company JD 320,000. The balance of retained earnings on 1/1/2018 is JD 18,000. Optional reserve for 2018 is (According to the maximum percantage)" 64000 32000 48000 18000 A Moving to another question will save this response. « » 1135 AM arch 37°C Haze A a d0 9/1/2021 DELL Home F10 F11 F12 Priscr Insert Delete F8 F9 F4 F5 F6 Num Lock & Backspace 8 5 P జీ E R ні J K Enter B Y NT Alt Ctrl ооооarrow_forwardMCQ1 On November 1, Jeremiah Company ("IC") acquired the following investment which JC elected to account for using the OCI option under IFRS 9: • Lin Co. - 1,000 common shares at $30 per share. Brokerage fees to acquire the shares amounted to $500. JC's year-end is December 31. The quoted market price at December 31 was as follows: • Lin Co. = $32. If JC were to sell the investment at year-end, it would incur $600 of brokerage fees.arrow_forward
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- PROBLEM 2. On January 1, 2018, Inside Out Corporation had 30,000 ordinary shares of UP Company purchased at a total amount of P1,800,000, which includes directly attributable costs of P30,000. The shares were irrevocably designated to present changes in fair value through other comprehensive income. On December 31, 2018, the UP shares were selling at P65 per share. In July 2019, Inside Out Corporation received a 20% bonus issue. Subsequently, it sold 15,000 shares at P70 per share. Market value of UP ordinary at December 31, 2019 was P72 per share. What total amount should be reclassified to Retained Earnings as a result of selling 15,000 shares in 2019?arrow_forwardPROBLEM 2. On January 1, 2018, Inside Out Corporation had 30,000 ordinary shares of UP Company purchased at a total amount of P1,800,000, which includes directly attributable costs of P30,000. The shares were irrevocably designated to present changes in fair value through other comprehensive income. On December 31, 2018, the UP shares were selling at P65 per share. In July 2019, Inside Out Corporation received a 20% bonus issue. Subsequently, it sold 15,000 shares at P70 per share. Market value of UP ordinary at December 31, 2019 was P72 per share. At what amount should the Investment be shown on the December 31, 2019 Statement of Financial Position?arrow_forwardDiscussion Question 17-11 (LO. 2) Marmot Corporation pays a dividend of $100,000 in the current year. Otter Corporation, a calendar year C corporation, owns 15% of Marmot's stock. Gerald, an individual taxpayer in the 24% marginal bracket, also owns 15% of Marmot's stock. Compare and contrast the treatment of the dividend by Otter Corporation and Gerald. Use the attached dividend deduction. a. Otter Corporation will be allowed a dividends received deduction equal to 50% of the dividends it received. It will pay tax of fill in the blank % on the remaining portion of the dividends.arrow_forward
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