19. Red Company is a calendar-year firm with operations in several countries. At January 1, 2018,...
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19. Red Company is a calendar-year firm with operations in several countries. At January 1, 2018, the company had issued 40,000 executive stock options permitting executives to buy 40,000 shares of stock for $25. The vesting schedule is 20% the first year, 30% the second year, and 50% the third year (graded-vesting). The fair value of the options is estimated as follows: Vesting Date Dec. 31, 2018 Dec. 31, 2019 Dec. 31, 2020 Amount Vesting 20% 30% 50% Fair Value per Option $ 7 $ 8 $ 12 Assume Red prepares its financial statements in accordance with IFRS, what is the compensation expense related to the options to be recorded in 2019? A. $48,000 B. $96,000. C. $128,000. D. $140,000. 19. Red Company is a calendar-year firm with operations in several countries. At January 1, 2018, the company had issued 40,000 executive stock options permitting executives to buy 40,000 shares of stock for $25. The vesting schedule is 20% the first year, 30% the second year, and 50% the third year (graded-vesting). The fair value of the options is estimated as follows: Vesting Date Dec. 31, 2018 Dec. 31, 2019 Dec. 31, 2020 Amount Vesting 20% 30% 50% Fair Value per Option $ 7 $ 8 $ 12 Assume Red prepares its financial statements in accordance with IFRS, what is the compensation expense related to the options to be recorded in 2019? A. $48,000 B. $96,000. C. $128,000. D. $140,000.
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Intermediate Accounting
ISBN: 978-0078025839
9th edition
Authors: J. David Spiceland, James Sepe , Mark Nelson , Wayne Thomas
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