Hill view Homes, Ltd. granted options at the beginning of the current year to all its salaried
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Hill view Homes, Ltd. granted options at the beginning of the current year to all its salaried employees. At the grant date, the options had a fair value of $900,000 and can be exercised only over a 3-year vesting period. At the end of the year, Hill view charged $300,000 to expense, assuming that all employees would vest. Prepare the journal entry to record the compensation expense for Year 2 assuming that Hill view expects only 35% of employees to vest. Assume that Hill view chooses to adjust the fair value for the estimated forfeitures.
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Related Book For
Intermediate Accounting
ISBN: 978-0134730370
2nd edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
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