Business, 21.03.2020 10:01, EstevanOtero7361
Sarasota Company adopted a stock-option plan on November 30, 2016, that provided that 67,700 shares of $5 par value stock be designated as available for the granting of options to officers of the corporation at a price of $9 a share. The market price was $12 a share on November 30, 2017.
On January 2, 2017, options to purchase 28,600 shares were granted to president Tom Winter—14,900 for services to be rendered in 2017 and 13,700 for services to be rendered in 2018. Also on that date, options to purchase 14,600 shares were granted to vice president Michelle Bennett—7,300 for services to be rendered in 2017 and 7,300 for services to be rendered in 2018. The market price of the stock was $14 a share on January 2, 2017. The options were exercisable for a period of one year following the year in which the services were rendered. The fair value of the options on the grant date was $4 per option.
In 2018, neither the president nor the vice president exercised their options because the market price of the stock was below the exercise price. The market price of the stock was $8 a share on December 31, 2018, when the options for 2017 services lapsed.
On December 31, 2019, both president Winter and vice president Bennett exercised their options for 13,700 and 7,300 shares, respectively, when the market price was $16 a share.
Prepare the necessary journal entries in 2016 when the stock-option plan was adopted, in 2017 when options were granted, in 2018 when options lapsed, and in 2019 when options were exercised.
Answers: 3
Other questions on the subject: Business
Business, 21.06.2019 20:30, myohmyohmy
Which of the following government agencies is responsible for managing the money supply in the united states? a. the u. s. mint b. the federal reserve bank c. congress d. the department of the treasury 2b2t
Answers: 3
Business, 22.06.2019 08:30, isaicruz2018
Which actions can you improve your credit score? (multiple can be selected)having a good credit score should be your prime objective as credit companies analyze your creditworthiness before giving you a loan. there are certain guidelines you can follow to ensure you have a good credit score. always pay your mortgage interest on time. if you are a student, make student loan inquiries before taking any loan. if you have multiple credit cards, manage them judiciously. maintain a healthy balance in your bank account.1. always pay your mortgage interest on time.2. if you are a student, make student loan inquiries before taking any loan.3. if you have multiple credit cards, manage them judiciously.4. maintain a healthy balance in your bank account.
Answers: 1
Business, 22.06.2019 16:30, emmmssss21
Bernard made a gift of $500,000 to his brother in 2014. due to bernard’s prior taxable gifts he paid $200,000 of gift tax. when bernard died in 2019, the applicable gift tax credit had increased. at bernard’s death, what amount related to the $500,000 gift to his brother is included in his gross estate?
Answers: 3
Business, 23.06.2019 03:20, hrijaymadathil
Milden company has an exclusive franchise to purchase a product from the manufacturer and distribute it on the retail level. as an aid in planning, the company has decided to start using a contribution format income statement. to have data to prepare such a statement, the company has analyzed its expenses and has developed the following cost formulas: cost cost formula cost of good sold $35 per unit sold advertising expense $210,000 per quarter sales commissions 6% of sales shipping expense ? administrative salaries $145,000 per quarter insurance expense $9,000 per quarter depreciation expense $76,000 per quarter management has concluded that shipping expense is a mixed cost, containing both variable and fixed cost elements. units sold and the related shipping expense over the last eight quarters follow: quarter units sold shipping expense year 1: first 10,000 $ 119,000 second 16,000 $ 175,000 third 18,000 $ 190,000 fourth 15,000 $ 164,000 year 2: first 11,000 $ 130,000 second 17,000 $ 185,000 third 20,000 $ 210,000 fourth 13,000 $ 147,000 milden company’s president would like a cost formula derived for shipping expense so that a budgeted contribution format income statement can be prepared for the next quarter. required: 1. using the high-low method, estimate a cost formula for shipping expe
Answers: 2
Do you know the correct answer?
Sarasota Company adopted a stock-option plan on November 30, 2016, that provided that 67,700 shares...
Questions in other subjects:
Mathematics, 16.10.2019 04:10
