On January 1, Year 1 the Chantilly Corporation (CC) awarded 2 million shares of $5 par,...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On January 1, Year 1 the Chantilly Corporation (CC) awarded 2 million shares of $5 par, restricted stock in equal amounts to 200 top executives, subject to forfeiture if employment is not maintained over the 3-year vesting period. CC estimates that 180 executives will vest at the end of the 3-year vesting period. On the grant date the market value of Chantilly Corporation stock is $70 per share. On December 31, Year 3, (the end of the vesting period), CC determines that 185 executives have vested in the restricted stock award plan. Record compensation expense at the end of Years 1, 2, and 3. On January 1, Year 1 the Chantilly Corporation (CC) awarded 2 million shares of $5 par, restricted stock in equal amounts to 200 top executives, subject to forfeiture if employment is not maintained over the 3-year vesting period. CC estimates that 180 executives will vest at the end of the 3-year vesting period. On the grant date the market value of Chantilly Corporation stock is $70 per share. On December 31, Year 3, (the end of the vesting period), CC determines that 185 executives have vested in the restricted stock award plan. Record compensation expense at the end of Years 1, 2, and 3.
Expert Answer:
Answer rating: 100% (QA)
Fair Value of Grant Market Value of Stock Excercise Price of Stock 705 65 Compensati... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0078025839
9th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
Posted Date:
Students also viewed these accounting questions
-
1. (2 points) Prove or disprove that the sum of any even integer and any odd integer is odd.
-
Part 1 of 11 The notes to the Wolfe Ltd financial statements reported the following data on December 31, Year 1 (end of the fiscal year) Click the icon to view the financial statement data.) Wolfe...
-
You are the accountant for a reporting entity, Storm Ltd. You have received a phone call from the managing director concerning the following. On 1 July 2018, Storm Ltd acquired an asset for $500,000,...
-
Monterey Co. makes and sells a single product. The current selling price is $15 per unit. Variable expenses are $9 per unit, and fixed expenses total $27,000 per month. Required: (Unless otherwise...
-
For each of the following events, explain whether it represents systematic risk or idiosyncratic risk and explain why. a. Your favorite restaurant is closed by the county health department. b. The...
-
1. Suppose that Sydney Solberg had disposed of his entire estate in fee simple before his death. Would the result have been different? Discuss. 2. Assuming that Ackleys behavior was unethical, was it...
-
Describe the importance of cost and value management in projects.
-
Auto Parts Company produces 12 parts for car bodies and sells them to four automobile assembly companies in Canada. The company implemented lean operating and costing procedures three years ago....
-
How do the following elements in an organization relate to Maslow's Hierarchy of Needs? Give an example of how one of these elements can be used to motivate employees in relation to Maslow's...
-
The misery is not miserly phenomenon refers to a sad persons spending judgment going haywire. In a recent study, 31 young adults were given $10 and randomly assigned to either a sad or a neutral...
-
Ashlyn, Devin and Mackenzie are engineers who set up ADM, LLP. They are equal partners for the purposes of running the firm and the distribution of profits. For tax purposes, the profits of ADM, LLP...
-
Is there any operational or logistical connection between original value drivers (from the first acquisition perspective) and new value drivers (of the second acquisition perspective)? If yes, is...
-
discuss the value drivers and sources of value, i.e. outputs/outcomes of the procurement and contracting operations, strategy, and tactics, or use of specific techniques. How did this way of...
-
You and your partner own Gaia's Organic Grocery: You buy your romaine lettuce from Naturally Yours Garden Farm. Unknown to you, Naturally Yours' romaine has been infected by a microscopic parasite...
-
12. Due to the popularity of the ice cream, Ben and James have decided to expand their team and lease more workspace. The new space needs to be renovated and Ben has entered into a contract with...
-
Learning Activity 8: Slander or Libel Let's return to the four examples given at the beginning of this lesson. 1. Your ex-partner says you were a clumsy dancer and boring. Were you slandered? What...
-
Question 1: I will build a commercial website about a baking company. The term "commercial website" refers to an online presence that is conceived of, developed, and kept updated by a business. The...
-
What is your assessment of the negotiations process, given what you have studied? What are your recommendations for Mr. Reed? You must justify your conclusions
-
Indicate by letter whether each of the events listed below increases(I),decreases(D),or has no effect(N)on an employer's projected benefit obligation. Events _____1. Interest cost. _____2....
-
Olive Branch Restaurant Corporation sells franchises throughout the western states. On January 30, 2018, the company entered into the following franchise agreement with Jim and Tammy Masters: 1. The...
-
The Tax Code differentiates between qualified option plans, including incentive plans, and nonqualified plans. What are the major differences in tax treatment between incentive plans and nonqualified...
-
For liquid acetone at \(20^{\circ} \mathrm{C}\) and \(1 \mathrm{bar}\), \[ \beta=1.487 \times 10^{-3} /{ }^{\circ} \mathrm{C} \quad \alpha=62 \times 10^{-6} / \mathrm{bar} \quad V=1.287...
-
Determine the molar volume of ammonia vapour and ammonia liquid at \(321.55 \mathrm{~K}\) and 1.95 \(\mathrm{MPa}\). Ammonia is assumed to follow van der Waals equation of state.
-
Any equation that relates to the pressure, temperature and volume is called an equation of state. Justify the statement.
Study smarter with the SolutionInn App