On January 1 , 2 0 1 6 , Telespace Inc. grants 1 2 million stock options
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On January Telespace Inc. grants million stock options to its employees. The stock options have exercise price of $ which is equal to the grantdate price. All options will vest in three years. The grant date fair value of the options is $ per option. All million options are expected to vest. On January all million vested options are exercised when the stock price is $ The applicable tax rate for all periods is The company has sufficient taxable income for the stock option tax deductions to reduce income taxes payable in all periods By what amount will Telespace's shareholder's equity be increased in year A $ million B $ million C $ million D $ How much is the deferred tax to be recognized in year a deferred tax asset of $ millionb. deferred tax liability of $ millionC. deferred tax asset of $ milliond. deferred tax liability of million How much is the cash that Telespace will collect from its employees when they exercise all vested stock options on January A $ millionB. $ millionC. $ millionD. $ How much is the excessive tax benefits to be credited to tax expense on January according to the ASU a $ millionb. $ millionc. $ milliond. $ million
Related Book For
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
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