Question: Please help with the ones marked incorrect! Identifying and Analyzing Financial Statement Effects of Share-Based Compensation Weaver Industries implements a new share-based compensation plan in

Please help with the ones marked incorrect!

Identifying and Analyzing Financial Statement Effects of Share-Based Compensation Weaver Industries implements a new share-based compensation plan in 2009. Under the plan, the company's CEO and CFO each will receive non-qualified stock options to purchase 100,000, no par shares. The options vest ratably (1/3 of the options each year) over three years, expire in 10 years, and have an exercise (strike) price of $22 per share. Weaver uses the Black-Scholes model to estimate a fair-value per option of $15. The company's tax rate is 40%. (a) Use the financial statement effects template to record the compensation expense related to these options for each year 2009 through 2011. Include the effects of any anticipated deferred tax benefits.

Balance Sheet

Transaction Cash Asset + Noncash Assets = Liabilities + Contributed Capital + Earned Capital
Compensation expense each year: 2009 through 2011 AnswerPlease help with the ones marked incorrect! Identifying and Analyzing Financial Statement AnswerEffects of Share-Based Compensation Weaver Industries implements a new share-based compensation plan Answerin 2009. Under the plan, the company's CEO and CFO each will Answerreceive non-qualified stock options to purchase 100,000, no par shares. The options Answervest ratably (1/3 of the options each year) over three years, expire
Deferred tax benefits each year: 2009 through 2011 Answerin 10 years, and have an exercise (strike) price of $22 per Answershare. Weaver uses the Black-Scholes model to estimate a fair-value per option Answerof $15. The company's tax rate is 40%. (a) Use the financial Answerstatement effects template to record the compensation expense related to these options Answerfor each year 2009 through 2011. Include the effects of any anticipated

Income Statement

Revenue - Expenses = Net Income
Answerdeferred tax benefits. Balance Sheet Transaction Cash Asset + Noncash Assets = AnswerLiabilities + Contributed Capital + Earned Capital Compensation expense each year: 2009 Answerthrough 2011 Answer Answer Answer Answer Answer Deferred tax benefits each year:
Answer2009 through 2011 Answer Answer Answer Answer Answer Income Statement Revenue - AnswerExpenses = Net Income Answer Answer Answer Answer Answer Answer (c) In Answer2014, the company's stock price is $40 and the CEO exercises all

(c) In 2014, the company's stock price is $40 and the CEO exercises all of her options. Use the financial statement effects template to record the exercise.

Balance Sheet

Transaction Cash Asset + Noncash Assets = Liabilities + Contributed Capital + Earned Capital
2014 Answerof her options. Use the financial statement effects template to record the Answerexercise. Balance Sheet Transaction Cash Asset + Noncash Assets = Liabilities + AnswerContributed Capital + Earned Capital 2014 Answer Answer Answer Answer Answer Answerimage text in transcribed Answerimage text in transcribed

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!