Question: On January 1 Year 1 Phoenix Corporation adopts a performance based
On January 1, Year 1, Phoenix Corporation adopts a performance-based share option plan for 25 executives, with the number of shares based on the yearly increase in sales. At the end of Year 1, based on a 10% increase in sales, it expects that each executive will be granted 150 options and that the fair value of an option expected to vest is $15.75. Phoenix expects a turnover rate of 5% per year over the three-year service period. Determine the compensation expense for Year 1 for this plan.
Answer to relevant QuestionsOn January 1, Year 1, Salt Lake Corporaton grants stock appreciation rights to its CEO. Under the plan, the CEO will receive cash for the difference between the quoted market price over a $50 option price for 1,000 shares of ...On January 1, 2010, Sampress Company adopts a compensatory share option plan for its 50 executives. The plan allows each executive to purchase 200 shares of its $2 par common stock for $30 per share after completing a ...On January 1, 2010, Pierce Company establishes a performance based share option plan for its 80 top executives. The terms of the plan are that each executive is granted a maximum of 200 options after completing a three-year ...Assume that Eagle Corporation has issued 10%, participating cumulative preferred stock with a total par value of $22,000 and common stock with a total par value of $44,000. Therefore, the preferred stock par value is 1/3 and ...Hernandez Company began 2010 with a $120,000 balance in retained earnings. During the year, the following events occurred:1. The company earned net income of $80,000.2. A material error in net income from a previous period ...
Post your question