Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. rutter inc. granted (see below for #) stock option

Rutter Inc. granted (see below for #) stock options to executives and employees on January 1,...

70.2K

Verified Solution

Question

Accounting

  1. Rutter Inc. granted (see below for #) stock options toexecutives and employees on January 1, 2017. The options have astrike price is $10 per share and expire in 2019. The par value ofthe common stock is $ Using an option pricing model, the companycalculates a fair value of $20 per share. The expected serviceperiod, or benefit period, is (see below) years.

  1. Prepare the journal entries for 2017 and 2018.  

  1. In 2019, (see below) % of the options are exercised and theremaining options expire.      

LastName           #of options granted_      serviceperiod       % exercised_______

A –D                   200,000                                    2years                    20%

E – K                    300,000                                     3years                    30%

L –S                      250,000                                     2 years                  40%

T –Z                     500,000                                     3years                  50%

Answer & Explanation Solved by verified expert
3.9 Ratings (546 Votes)
    See Answer
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

Mechanical Engineering
1.2K views

Bruce, a research chemist for a major petro-chemical company, wrote a dense report about some new...

Statistics
1.2K views

Approximately 7 1 of residents in the Charleston area use public transportation on a regular...

Statistics
1.2K views

The accompanying data show the number of bacteria present after a certain number of hours...

Calculus
1.2K views

For 0 find 0 necessary to prove lim 9x 30 15 X 5 0 0...

Calculus
1.2K views

Find the horizontal asymptote for the function given below Give your answer in the form...

Accounting
1.2K views

in its process of peanuts this month novak added $3675 of DM from its warehouse...

Accounting
1.2K views

Hamish Ltd needs your assistance in calculating and disclosing the taxation expense for the financial...

Accounting
1.2K views

Superior Hardwood Company distributes hardwood products to small furniture manufacturers. The adjusted trial balance data...

Accounting
1.2K views

Anthony Bautista needs $23,000 in 7 years. Click here to view factor tables. ...

Accounting
1.2K views

In one month Zoe earned $600 at her part-time job, and $70 was withheld for...

Accounting
1.2K views

Task III. CLOSING THE ACCOUNTS-25 points Prepare the closing entries for Cineplex Theatre 225 10...

Finance
1.2K views

Initial public offering On April 18,2019, the video conferencing company, Zoom completed its IPO on...