Intermediate Accounting (2nd Edition)
Intermediate Accounting (2nd Edition)
2nd Edition
ISBN: 9780134730370
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Chapter 19, Problem 19.2P

a.

To determine

To calculate: The compensation cost to be recognized for the year.

Given Information:

Number of shares granted is 100,000.

Exercise price of the shares is $12.

Fair value at the grant date is $45.

Vesting period is 2 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 100,000.

Exercise price of the shares is $12.

Fair value at the grant date is $45.

Vesting period is 2 years.

Vesting probability is 100% in each year.

c.

To determine

The journal entry to record the actual exercise of stock option..

Given Information:

Number of shares granted is 100,000.

Exercise price of the shares is $12.

Fair value at the grant date is $45.

Vesting period is 2 years.

Vesting probability is 100% in each year.

d.

To determine

The value of compensation expense for the end of years and journal entry of it.

Given Information:

Number of shares granted is 100,000.

Exercise price of the shares is $12.

Fair value at the grant date is $45.

Vesting period is 2 years.

Vesting probability is 100% in first year.

Vesting probability is 80% in second year.

e.

To determine

The value of compensation expense for the end of years and journal entry of it.

Given Information:

Number of shares granted is 100,000.

Exercise price of the shares is $12.

Fair value at the grant date is $45.

Vesting period is 2 years.

Vesting probability is 100% in first year.

Vesting probability is 80% in second year.

Unexercised options expired rate is 25%.

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Chapter 19 Solutions

Intermediate Accounting (2nd Edition)

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