72 for a compensatory share option plan a formal journal entry or entries would be r 4313704

72 for a compensatory share option plan a formal journal entry or entries would be r 4313704

72.For a compensatory share option plan, a formal journal entry or entries would be required for which of the following dates?

Issuance of Share

Options on the

Issuance of Stock on

Grant Date

the Exercise Date

I.

Yes

Yes

II.

Yes

No

III.

No

No

IV.

No

Yes

?

a.

I

b.

II

c.

III

d.

IV

Exhibit 15-5

On January 1, 2016, Roberts Company adopts a compensatory share option plan and grants 40 executives 1,000 shares each at $30 a share. The fair value per option is $7 on the grant date. The company estimates that its annual employee turnover rate during the service period of three years will be 4%.

?

73.Refer to Exhibit 15-5. The journal entry to record compensation expense for 2016 will be (Round your final answer to the nearest whole dollar.)

a.

Compensation Expense         247,726

Paid-in Capital Share Options            247,726

b.

Compensation Expense          82,575

Paid-in Capital Share Options             82,575

c.

Compensation Expense         91,467

Paid-in Capital Share Options            91,467

d.

Compensation Expense         93,333

Common Stock Option Plan              93,333

74.Refer to Exhibit 15-5. At the end of 2017, the company estimates that the employee turnover will be 5% a year for the entire service period. The compensation expense for 2017 will be (Round your answer to the nearest whole dollar.)

a.

$77,468

b.

$80,022

c.

$82,575

d.

$160,043

75.Refer to Exhibit 15-5. At the end of 2017, the company estimates that the employee turnover will be 5% a year for the entire service period. At the end of 2018, only 30,000 options vest as only 30 of the 40 executives actually remain. The compensation expense for 2018 will be (Round off turnover calculations to three decimal places and answer to the nearest dollar.)

a.

$49,957

b.

$70,000

c.

$80,022

d.

$82,575

Exhibit 15-6
On January 1, 2016, 50 executives were given a performance-based share option plan that would award them with a maximum of 300 shares of $10 par common stock for $20 a share. On the grant date, the fair value of an option was $16.50. The number of options that will vest depends on the size of the annual average increase in sales over the next three years according to the following table:

Annual Average Increase in Sales

No. of Shares

Greater than 5%

50

Greater than 10%

150

Greater than 15%

300

On the grant date, the company estimates the annual average sales increase will be 14%.

?

76.Refer to Exhibit 15-6. The estimated total compensation cost will be

a.

$55,000.

b.

$123,750.

c.

$27,500.

d.

$247,500.

77.Refer to Exhibit 15-6. In 2017, the company determined that the actual annual average increase was 16%. The compensation expense for 2017 will be

a.

$123,750

b.

$247,500

c.

$82,500

d.

$55,000

Exhibit 15-7
On January 1, 2016, 70 executives were granted a performance-based share option plan that would award them each a maximum of 300 shares of $5 par common stock for $12 a share based on the increase in sales over the next three years. The fair value per option on the grant date was $16. The award table is as follows:

Increase in Sales

No. of Shares

10%

100

15%

200

20%

300

The company estimates that the sales increase will be 22% and that the annual employee turnover rate will be 2%.

?

78.Refer to Exhibit 15-7. The compensation expense for 2016 is (to the nearest dollar)

a.

$82,320.

b.

$105,414.

c.

$109,760.

d.

$210,828.

79.Refer to Exhibit 15-7. In 2017 the actual sales increase was determined to be 18%, and the overall turnover rate was exactly 2%. The compensation expense for 2017 is (to the nearest dollar)

a.

$210,828.

b.

$140,552.

c.

$70,276.

d.

$35,138.

80.For a stock appreciation rights (SAR) compensation plan, the measurement date is the date

a.

on which the options (SARs) are granted to the employees.

b.

when the employees may first exercise the options (SARs).

c.

on which the options (SARs) are exercised.

d.

of the adoption of the plan.

"Get 15% discount on your first 3 orders with us"
Use the following coupon
"FIRST15"

Order Now

Related Posts