Business, 17.04.2020 22:12 megababe04
On January 1, 2018, Farmer Fabrication issued stock options for 380,000 shares to a division manager. The options have an estimated fair value of $9 each. To provide additional incentive for managerial achievement, the options are not exercisable unless divisional revenue increases by 3% in five years. Suppose that Farmer initially estimates that it is not probable the goal will be achieved, but then after one year, Farmer estimates that it is probable that divisional revenue will increase by 3% by the end of 2020.
Required:
1. What is the revised estimate of the total compensation?
2. What action will be taken to account for the options in 2019?3. Prepare the journal entries to record compensation expense in 2019 and 2020.
Answers: 3
Other questions on the subject: Business
Business, 22.06.2019 09:40, Tyrant4life
Henry crouch's law office has traditionally ordered ink refills 55 units at a time. the firm estimates that carrying cost is 35% of the $11 unit cost and that annual demand is about 240 units per year. the assumptions of the basic eoq model are thought to apply. for what value of ordering cost would its action be optimal? a) for what value of ordering cost would its action be optimal?
Answers: 2
Business, 22.06.2019 21:30, dondre54
The year-end financial statements of calloway company contained the following elements and corresponding amounts: assets = $34,000; liabilities = ? ; common stock = $6,400; revenue = $13,800; dividends = $1,450; beginning retained earnings = $4,450; ending retained earnings = $8,400. based on this information, the amount of expenses on calloway's income statement was
Answers: 1
Business, 22.06.2019 22:50, chrisraptorofficial
Wendy made her career planning timeline in 2010. in what year should wendy's timeline start? a. 2013 o b. 2012 oc. 2010 o d. 2011
Answers: 2
You know the right answer?
On January 1, 2018, Farmer Fabrication issued stock options for 380,000 shares to a division manager...
Questions in other subjects:
Physics, 13.02.2020 22:25
