Refer to the situation described in BE 19-2. Suppose that unexpected turnover during 2012 caused the forfeiture of 5% of the stock options. Ignoring taxes, what is the effect on earnings in 2012? In 2013?
Answer to relevant QuestionsRefer to the situation described in BE 19-2. Suppose that the options are exercised on April 3, 2014, when the market price is $19 per share. Ignoring taxes, what journal entry will National record?On October 1, 2011, 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 ...On January 1, 2011, VKI Corporation awarded 12 million of its $1 par common shares to key personnel, subject to forfeiture if employment is terminated within three years. On the grant date, the shares have a market price of ...For the year ended December 31, 2011, Norstar Industries reported net income of $655,000. At January 1, 2011, the company had 900,000 common shares outstanding. The following changes in the number of shares occurred during ...Information from the financial statements of Ames Fabricators, Inc., included the following:Ames's net income for the year ended December 31, 2011, is $500,000. The income tax rate is 40%. Ames paid dividends of $5 per share ...
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