Business, 26.03.2021 02:10, SundaeSunday

The Burford Corporation provides an executive stock option plan. Under the plan, the company granted options on January 1, 2021, that permit executives to acquire 12 million of the company's $1 par value common shares within the next five years, but not before December 31, 2024 (the vesting date). The exercise price is the market price of the shares on the date of the grant, $14 per share. The fair value of the options, estimated by an appropriate model, is $3 per option. No forfeitures are anticipated. Ignore taxes. Required:
a. Determine the total compensation cost pertaining to the options.
b. Prepare the appropriate journal entry to record the award of options on January 1, 2021.
c. Prepare the appropriate journal entry to record compensation expense on December 31, 2020.
d. Prepare the appropriate journal entry to record compensation expense on December 31, 2021.

Answers: 2

Show answers

Other questions on the subject: Business

Business, 22.06.2019 12:00, jybuccaneers2022

Agovernment receives a gift of cash and investments with a fair value of $200,000. the donor specified that the earnings from the gift must be used to beautify city-owned parks and the principal must be re-invested. the $200,000 gift should be accounted for in which of the following funds? a) general fund b) private-purpose trust fund c) agency fund d) permanent fund

Answers: 1

continue

Business, 22.06.2019 15:10, GreenHerbz206

Paddock pools constructed a swimming pool and deck for the jensens' home. paddock installed the wrong trim on the pool. it would cost $2800 to change the trim-one-fifth of the total cost of the pool. the jensens refuse to pay anything for the pool. the paddock's best defense is: (a) duress (b) substanial performance (c)mistake (d) failure of conditions

Answers: 3

continue

Business, 22.06.2019 17:00, justyne2004

Afinancing project has an initial cash inflow of $42,000 and cash flows of −$15,600, −$22,200, and −$18,000 for years 1 to 3, respectively. the required rate of return is 13 percent. what is the internal rate of return? should the project be accepted?

Answers: 1

continue

Business, 22.06.2019 21:00, diablo871

Frost corporation incurred the following transactions during its first year of operations. (assume all transactions involve cash.) 1) acquired $1,900 of capital from the owners. 2) purchased $435 of direct raw materials. 3) used $290 of these direct raw materials in the production process. 4) paid production workers $490 cash. 5) paid $290 for manufacturing overhead (applied and actual overhead are the same). 6) started and completed 250 units of inventory. 7) sold 140 units at a price of $6 each. 8) paid $130 for selling and administrative expenses. the amount of raw material inventory on the balance sheet at the end of the accounting period would be:

Answers: 3

continue

Do you know the correct answer?

The Burford Corporation provides an executive stock option plan. Under the plan, the company granted...