On January 1, 2020, Benny Company granted 40,000 stock options to officers permitting the holder to...
Fantastic news! We've Found the answer you've been seeking!
Question:
![](https://dsd5zvtm8ll6.cloudfront.net/si.experts.images/questions/2022/05/628cba4fecab5_1653389901233.png)
Transcribed Image Text:
On January 1, 2020, Benny Company granted 40,000 stock options to officers permitting the holder to purchase one share of the company's $10 par common stock within the next 5 five years, but not before December 31, 2022 (the vesting date). The $29 exercise price is equal to the market price at the date of grant. An option pricing model determined the fair value of each option is $6. Prepare the journal entry to record the exercise of 20% of the options on June 30, 2023. On January 1, 2020, Benny Company granted 40,000 stock options to officers permitting the holder to purchase one share of the company's $10 par common stock within the next 5 five years, but not before December 31, 2022 (the vesting date). The $29 exercise price is equal to the market price at the date of grant. An option pricing model determined the fair value of each option is $6. Prepare the journal entry to record the exercise of 20% of the options on June 30, 2023.
Expert Answer:
Answer rating: 100% (QA)
it journal journal entry for exercise of 20 of option DE 30 2023 tont ban on ... View the full answer
Related Book For
Intermediate Accounting 2014 FASB Update
ISBN: 978-1118147290
15th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
Students also viewed these accounting questions
-
Prepare a journal entry to record each of the following materials transactions: a. Total materials purchased on account during the month amounted to $200,000. b. Direct materials requisitioned for...
-
Prepare the journal entry to record Channel One Companys issuance of 100,000 shares of $0.50 par value common stock assuming the shares sell for: a. $0.50 cash per share. b. $2 cash per share.
-
Prepare the journal entry to record the purchase of the condo, assuming the company uses the deferral method to record the government grant. Please make sure your final answer(s) are accurate to 2...
-
There is a bond on the spot-market. Price is 87.63 USD. Risk-free interest rate is 1.22%. The forward-price is 102.78 USD. Is there any arbitrage possibility if time to maturity is 9 months?
-
Read Joseph McCafferty's article entitled "Misgivings" in CFO.com (January 2007); www.cfo.com/article.cfm/8477078/c_8483311?f5singlepage&x51 (last accessed 5/28/09). a. Discuss your thoughts about...
-
Using your answers from Question 7 and Question 9, use convolution to find the average loss.
-
Graph 18 , vertex \(m\) List all the distinct Hamilton cycles beginning at the given vertex in the given graph. Indicate which pairs of Hamilton cycles are reverses of each other. 9.3 1.5 13.3 5.2...
-
Mountain Industries operates a Manufacturing Division and an Assembly Division. Both divisions are evaluated as profit centers. Assembly buys components from Manufacturing and assembles them for...
-
When Magdalena's outside basis is $ 1 4 2 , 5 0 0 , she receives a liquidating distribution of $ 3 5 , 6 2 5 cash and a proportionate share of inventory having a partnership basis of $ 4 9 , 8 7 5...
-
Godfrey and Taylor formed a partnership on 1 July 2015 with initial capital balances of $90 000 and $60 000 respectively. For the year ended 30 June 2016, the Profit or Loss Summary account disclosed...
-
PTEC 116- Module 11: Written Exercise Exercise #1: Review the following control loop and answer the question below. PT PIC PY 1003 1003 1003 PV 1003 1. Write a description of how the control loop...
-
Could you elaborate on the trade-offs involved in choosing between a columnar and row-based storage format for analytical workloads in data warehouses?
-
We can improve on the realism of the ideal gas by giving the atoms a small radius. If we make the potential energy infinite inside this radius (hard spheres), the potential energy is simple (zero...
-
P1: Write a code to display the following pattern (using nested for loop). 1*1=1 1*3=3 1*5=5 1*7=7 1*9=9 2*1=2 2*3-6 2*5-10 ... continue to 5*9-45
-
Master Budget Data: BASE DATA: Foundation Data for Solving questions 1, 2 and 3: Budgeted Direct Materials Cost Per UNIT $15.00 Budgeted Direct Manufacturing Labor Per UNIT $10.00 Budgeted...
-
Deming & Sons manufactures four grades of lubricant, W-10, W-20, W-30, and W-40, from a joint process. Additional information follows. Product Units Produced Sales Value at Split-Off Additional Costs...
-
During the last team meeting, Andres said, Lets hear from Jeong. He hasnt shared his perspective yet. Andres was performing a ________ role. Group of answer choices relational maintenance
-
The Place-Plus real estate development firm in Problem 24 is dissatisfied with the economists estimate of the probabilities of future interest rate movement, so it is considering having a financial...
-
On December 21, 2014, Zurich Company provided you with the following information regarding its trading investments. Previous fair value adjustment balance -0- Fair value adjustment-Cr. $ (1,400)...
-
Bandung Corporation began 2014 with a $92,000 balance in the Deferred Tax Liability account. At the end of 2014, the related cumulative temporary difference amounts to $350,000, and it will reverse...
-
Burnitz Manufacturing Company was organized on January 1, 2014. During 2014, it has used in its reports to management the straight-line method of depreciating its plant assets. On November 8, you are...
-
What is a business model, and what are its key elements?
-
The adjusted trial balance for Phoenix Consultant Corporation at the end of its fiscal year is shown below. Prepare the required closing entries. Phoenix Consultant Corporation Trial Balance December...
-
Why is pricing strategy so important to profitability?
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App