Business, 07.06.2020 03:01 faithrawlins14

SSG Cycles manufactures and distributes motorcycle parts and supplies. Employees are offered a variety of share-based compensation plans. Under its nonqualified stock option plan, SSG granted options to key officers on January 1, 2018. The options permit holders to acquire 24 million of the company’s $1 par common shares for $11 within the next six years, but not before January 1, 2021 (the vesting date). The market price of the shares on the date of grant is $13 per share. The fair value of the 24 million options, estimated by an appropriate option pricing model, is $3.3 per option. Required:
a. Determine the total compensation cost pertaining to the incentive stock option plan.
b. Prepare the appropriate journal entries to record compensation expense on December 31, 2018, 2019, and 2020.
c. Record the exercise of the options if all of the options are exercised on May 11, 2022, when the market price is $14 per share.

Answers: 3

Show answers

Other questions on the subject: Business

Business, 22.06.2019 04:50, ernie27

Neveready flashlights inc. needs $317,000 to take a cash discount of 3/15, net 70. a banker will loan the money for 55 days at an interest cost of $13,200. a. what is the effective rate on the bank loan? (use a 360-day year. do not round intermediate calculations. input your answer as a percent rounded to 2 decimal places.) b. how much would it cost (in percentage terms) if the firm did not take the cash discount but paid the bill in 70 days instead of 15 days? (use a 360-day year. do not round intermediate calculations. input your answer as a percent rounded to 2 decimal places.) c. should the firm borrow the money to take the discount? no yes d. if the banker requires a 20 percent compensating balance, how much must the firm borrow to end up with the $317,000? e-1. what would be the effective interest rate in part d if the interest charge for 55 days were $7,200?

Answers: 3

continue

Business, 22.06.2019 10:00, boo6931

Employees at a library check out books to patrons. books have an isbn and a name. the library sometimes has multiple copies of the same book. books have one or more authors. a patron is an individual who has an active (non-expired) library card. for each library card, we store the person's first and last names and their address. for each employee, we store their employee id, current salary, first and last name and their address. we also store the employee id of their current manager. each time we check out a book to a patron we need to store the date of the transaction, the employee who checked out the book to the patron, and the library card of the patron. some employees have library cards. if an employee patron turns in a book late, the fine that they pay is a percentage of their salary. some employees are authors who have library cards—they are allowed to check out as many books as they like.

Answers: 1

continue

Business, 22.06.2019 15:20, ashleyuchiha123

Gulliver travel agencies thinks interest rates in europe are low. the firm borrows euros at 5 percent for one year. during this time period the dollar falls 11 percent against the euro. what is the effective interest rate on the loan for one year? (consider the 11 percent fall in the value of the dollar as well as the interest payment.)

Answers: 2

continue

Business, 22.06.2019 20:00, jaylennkatrina929

Which of the following is a competitive benefit experienced by the first mover firm in an industry? a. the first mover will be able to achieve a less steep learning curve. b. the first mover will be able to reduce the switching costs. c. the first mover will not have to patent its products or technology. d. the first mover will be able to reduce costs through economies of scale.

Answers: 3

continue

You know the right answer?

SSG Cycles manufactures and distributes motorcycle parts and supplies. Employees are offered a varie...