On October 1, 2013, Farmer Fabrication issued stock options for 100,000 shares to a division manager. The options have an estimated fair value of $6 each. To provide additional incentive for managerial achievement, the options are not exercisable unless divisional revenue increases by 5% in three years. Farmer initially estimates that it is probable the goal will be achieved. How much compensation will be recorded in each of the next three years?
Answer to relevant QuestionsOn October 1, 2013, Farmer Fabrication issued stock options for 100,000 shares to a division manager. The options have an estimated fair value of $6 each. To provide additional incentive for managerial achievement, the ...For the year ended December 31, 2013, Norstar Industries reported net income of $655,000. At January 1, 2013, the company had 900,000 common shares outstanding. The following changes in the number of shares occurred during ...Anderson Steel Company began 2013 with 600,000 shares of common stock outstanding. On March 31, 2013, 100,000 new shares were sold at a price of $45 per share. The market price has risen steadily since that time to a high of ...At December 31, 2013, the financial statements of Hollingsworth Industries included the following:Net income for 2013 ...................... $560 millionBonds payable,10%, convertible into 36 million shares of common stock . ...In 2013, Adonis Industries changed its method of valuing inventory from the average cost method to the FIFO method. At December 31, 2012, Adonis’s inventories were $47.6 million (average cost). Adonis’s records indicated ...
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