the stock appreciation rights. The equivalent number of shares for stock appreciation rights will be based...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
the stock appreciation rights. The equivalent number of shares for stock appreciation rights will be based on the level of sales of the company at the end of 2023, as follows: Sales Level (in millions) P250 to P400 P400+ to P750 Above P750 Year 2021 2022 2023 Sales actually achieved by the company and the stock price at the end of each year are: Sales Level FV of SARS 210 million P74 410 million $5 760 million 95 There has been an average increase in annual sales of 25% in the past years and the company expects the same pattern over the vesting period & ACCO Required: SINESS 1. What is the compensation expense to be recognized in 2021, 2022 and 2023? 2. The entry to record the payment to employees in 2023 assuming all of the rights are exercised in 2023 when the prevailing fair market value is at P98 3. Assuming the SARs are not yet exercised as at December 31, 2023, and the fair value of the SARs is at P90, what is the liability for the SAR to be recognized as of December 31, 2023? Number of SARs to be granted 10,000 15,000 20,000 원사 In your audit of BELERICK CORP. for the calendar year ended December 31, 2020, you discovered the following charges to the company's retained earnings account: Balance January 1 Unrealized loss on financial assets at FVOCI Inventory fire loss Impairment loss on Property, Plant and Equipment 15% stock dividends declared (100,000 shares outstanding at P100 par) Loss on sale of equipment SINCE 1953 Correction of a prior period error Loss on retirement of ordinary shares as treasury Gain on sale of ordinary shares as excess over par Gain on premature retirement of bonds Unrealized holding gain on financial assets held at FVPL Proceeds from sale of donated shares Net income for the year Reserve for plant expansion P7,800,000 (400,000) (150,000) (750,000) (1,500,000) (200,000) (1,500,000) (1,050,000) 1,000,000 300,000 700,000 800,000 9,000,000 (3,000,000) a. The 15% stock dividends were declared on November 1, 2020, distributable to stockholders as of December 1, 2020 distributable on January 15, 2021. BELERICK's stocks were selling at P110 on November 1, P105 on December 1, and P112 on December 31, 2020. b. The company's share premium from treasury stock transaction account amounted to P850,000. the stock appreciation rights. The equivalent number of shares for stock appreciation rights will be based on the level of sales of the company at the end of 2023, as follows: Sales Level (in millions) P250 to P400 P400+ to P750 Above P750 Year 2021 2022 2023 Sales actually achieved by the company and the stock price at the end of each year are: Sales Level FV of SARS 210 million P74 410 million $5 760 million 95 There has been an average increase in annual sales of 25% in the past years and the company expects the same pattern over the vesting period & ACCO Required: SINESS 1. What is the compensation expense to be recognized in 2021, 2022 and 2023? 2. The entry to record the payment to employees in 2023 assuming all of the rights are exercised in 2023 when the prevailing fair market value is at P98 3. Assuming the SARs are not yet exercised as at December 31, 2023, and the fair value of the SARs is at P90, what is the liability for the SAR to be recognized as of December 31, 2023? Number of SARs to be granted 10,000 15,000 20,000 원사 In your audit of BELERICK CORP. for the calendar year ended December 31, 2020, you discovered the following charges to the company's retained earnings account: Balance January 1 Unrealized loss on financial assets at FVOCI Inventory fire loss Impairment loss on Property, Plant and Equipment 15% stock dividends declared (100,000 shares outstanding at P100 par) Loss on sale of equipment SINCE 1953 Correction of a prior period error Loss on retirement of ordinary shares as treasury Gain on sale of ordinary shares as excess over par Gain on premature retirement of bonds Unrealized holding gain on financial assets held at FVPL Proceeds from sale of donated shares Net income for the year Reserve for plant expansion P7,800,000 (400,000) (150,000) (750,000) (1,500,000) (200,000) (1,500,000) (1,050,000) 1,000,000 300,000 700,000 800,000 9,000,000 (3,000,000) a. The 15% stock dividends were declared on November 1, 2020, distributable to stockholders as of December 1, 2020 distributable on January 15, 2021. BELERICK's stocks were selling at P110 on November 1, P105 on December 1, and P112 on December 31, 2020. b. The company's share premium from treasury stock transaction account amounted to P850,000.
Expert Answer:
Answer rating: 100% (QA)
Answer Lets address each part of the required tasks 1 Compensation Expense Recognition We need to calculate the compensation expense to be recognized ... View the full answer
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Posted Date:
Students also viewed these accounting questions
-
Over the last two decades, there has been an emphasis, particularly in English-speaking advanced countries, on reducing the role of government and on reforming public management by adopting aspects...
-
The final paper will be based on Appendix 6C Illustrative Audit Case: Keystone Computers at pages 237-244 in your text. Write, in outline format but in complete sentences, a 6 to10 page audit plan....
-
There has been an increasing emphasis in recent years on making sure that young women are given the same opportunities to develop their mathematical skills as young men are given in U. S. educational...
-
02. The competitive exclusion principle only applies when the niches of competing species have a high degree of overlap. O True False 54bmit Q3. Four snake species colonize an island at the same...
-
Have you experienced or witnessed workplace violence? If yes, did the organizations leaders deal with it effectively? Explain.
-
Suppose you have a circuit in which you have connected 2 batteries, each of which that has voltage of 2.8V, in series with each other such that the positive terminal of one battery is connected to...
-
A food processing company is designing the packaging for a new product line of potato chips. The expected shelf life of the potato chips is 10 months. The bag has to hold \(200 \mathrm{~g}\) of...
-
Lor Companys single product sells at a price of $108 per unit. Cost data for its single product follows. Compute this companys break-even volume in units. Direct materials . . . . . . . . . . . . . ....
-
As a foreign exchange trader at a leading bank in Kenya, you have a customer who would like spot and 30-day forward AS/Yen quotes. Current market rates are: S/KES AS/KES Spot 150.25-34 30-day 30-15...
-
Tracey White, the owner of the Buzz Coffee Shop chain, has decided to expand her operations. Her 2012 financial statements follow. Tracey can buy two additional coffeehouses for $3 million, and she...
-
A gas is at a pressure of 2 bar and a temperature of 500 K. It is then cooled at a constant volume until the temperature reaches 300 K. How much heat is lost by the gas during this process?
-
Intrinsic motivation is when we are motivated by internal factors and the rewards are internal like joy or satisfaction. Extrinsic motivation is when we are motivated by external factors like a grade...
-
Using the base case, calculate the composite effects of a 5 percent increase in Sales, a 2 percent decrease in Gross Margin, and a 5 percent increase is SG&A as percent of Sales. Colossal Chemical...
-
An athlete throws a shot with weight m kg. At the beginning of the throwing motion, the shot is held h m above the ground. The athlete raises the shot to a height of h m before releasing it. The shot...
-
A hotel is being constructed to cater for renewed demand post-covid Construction Cost = RM 20 million Allocation of Fixed Costs from HQ = RM 5 million Payment Made to Consultants = RM 2 million The...
-
What factors might influence a consumer's decision to shop online instead of at a physical store? Sarah, a 28-year-old professional, visits ABC Electronics' website to purchase a new laptop. What...
-
Phoebe, Inc., a domestic retailer, bought merchandise for resale from a French supplier on August 20th with the purchase being denominated in Euros (E). Phoebe, Inc. prepares monthly financial...
-
Convert the numeral to a HinduArabic numeral. A94 12
-
Identify the exchange rates used to translate income statement and balance sheet items when the foreign currency is defined as the functional currency. Discuss the logic for the use of the exchange...
-
Effective financial statement analysis requires an understanding of a firms economic characteristics. The relations between various financial statement items provide evidence of many of these...
-
Selected data for General Mills for 2007, 2008, and 2009 appear below (amounts in millions). Required a. Compute the rate of ROCE for 2007, 2008, and 2009. b. Compute basic EPS for 2007, 2008, and...
-
Suppose Starbucks is considering introducing a new low-calorie blended coffee drink called FrapZero. The firm believes that the drinks flavor and appeal to calorie-conscious drinkers will make it a...
-
By using the yield to maturity on AT&Ts debt, we found that its pretax cost of debt is 3.65%. If AT&Ts tax rate is 25%, what is its effective cost of debt?
-
You work in Walt Disney Companys corporate finance and treasury department and have been assigned to the team estimating Disneys WACC. You must estimate this WACC in preparation for a team meeting...
Study smarter with the SolutionInn App