Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. questions 4 and 5 questions on january 1, 2019, a

Questions 4 and 5 Questions On January 1, 2019, a compensation...

60.1K

Verified Solution

Question

Accounting

image
Questions 4 and 5 Questions On January 1, 2019, a compensation plan with a stock option plan was created for senior management (top executives) in which it is stipulated that they can receive the right to purchase up to 18,000 common shares to $ 40 per share. The par value of the stock is $ 10. On February 1, 2019, the options were granted to the executives. Options are non-transferable and must continue as employees in order to exercise the option. The options expire on February 1, 2023. The company assumes that the services that these executives will offer will be performed in the same proportion for the years 2019 and 2020. It is estimated that the fair value of the options granted to these executives is $ 1,900,000. 4. On February 1, 2019, a share compensation expense will be recognized in the amount of: a. $0 b. $ 180,000 c. $ 720,000 d. $ 1,900,000 5. Assuming that all executives remained working in the company, the compensation expense in shares for the year 2020 will be: a. $0 b. $ 90,000 c. $ 360,000 d. $ 950,000

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

General Management
1.2K views

What was their philosophy/ approach in leading the advancement of racial equality and civil rights? Give explanation.

Biology
1.2K views

60 01 23 46 During DNA replication synthesizing new DNA from both strands requires the...

Biology
1.2K views

Question 21 You are tutoring a fellow student about the genomes of prokaryotes You ask...

Biology
1.2K views

When does Congress adjourn When the Senate ends the session the House of Representatives ends...

Basic Math
1.2K views

Use the sinking fund formula to determine the payment needed to reach the accumulated amount....

Statistics
1.2K views

Compute the least squares regression line for predicting selling price from size Selling Size Square...

Accounting
1.2K views

Using the partial Unadjusted Trial Balance at yearend June 30, 2020 below prepare the annual...

Accounting
1.2K views

Required information The following information applies to the questions displayed below.j Park Co. is considering...

Accounting
1.2K views

Please show the math for each question listed below. Thank you! 3....

Accounting
1.2K views

5 On January 2, 2019, the Hanover Company purchased some office equipment for $46,000. The...

Accounting
1.2K views

Old Country Links, Inc., produces sausages in three production departmentsMixing, Casing and Curing, and Packaging....

Accounting
1.2K views

Consider the following information pertaining to a company's inventory: \table[[,,,Net Realizable],[Product,Quantity,Cost,Value],[Revolvers,15,$122,$159 answer options...