How much compensation expense would be recorded in each of Years 1 to 5? (Do not round
Question:
How much compensation expense would be recorded in each of Years 1 to 5? (Do not round intermediate calculations. Enter recoveries (if any) with a minus sign.) End of Year 20X3 20X4 20X5 20X6 20X7
Employees expected to remain until vesting36 (60%)34 (57%)32 (53%)31 (52%)n/a
Employees expected to forfeit24 (40%)26 (43%)28 (47%)29 (48%)n/a
Employees actually forfeiting in the year 04200
Employees actually receiving options (60 − 28) 54 (90%)
1 Record the entry for annual compensation expense.
2 Record the entry for annual compensation expense.
3 Record the entry for annual compensation expense.
4 Record the entry for annual compensation expense.
5 Record the entry for annual compensation expense.
6 Record the entry for exercising the stock options.
7 Record the entry for lapse the stock options.
Intermediate Accounting Volume 1
ISBN: 978-1119496496
12th Canadian edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy