Under its executive stock option plan, National Corporation granted 12 million options on January 1, 2021,...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Under its executive stock option plan, National Corporation granted 12 million options on January 1, 2021, that permit executives to purchase 12 million of the company's $1 par common shares within the next six years, but not before December 31, 2023 (the vesting date). The exercise price is the market price of the shares on the date of grant, $17 per share. The fair value of the options, estimated by an appropriate option pricing model, is $5 per option. Suppose that unexpected turnover during 2022 caused the forfeiture of 5% of the stock options. Compute the amount of compensation expense for 2022 and 2023. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) Compensation expense (S in millions) 2022 2023 Under its executive stock option plan, National Corporation granted 12 million options on January 1, 2021, that permit executives to purchase 12 million of the company's $1 par common shares within the next six years, but not before December 31, 2023 (the vesting date). The exercise price is the market price of the shares on the date of grant, $17 per share. The fair value of the options, estimated by an appropriate option pricing model, is $5 per option. Suppose that unexpected turnover during 2022 caused the forfeiture of 5% of the stock options. Compute the amount of compensation expense for 2022 and 2023. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) Compensation expense (S in millions) 2022 2023
Expert 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
-
Under its executive stock option plan, National Corporation granted 12 million options on January 1, 2021, that permit executives to purchase 12 million of the companys $1 par common shares within...
-
Under its executive stock option plan, National Corporation granted 12 million options on January 1, 2018, that permit executives to purchase 12 million of the company's $1 par common shares within...
-
Under its executive stock option plan, National Corporation granted 12 million options on January 1, 2021, that permit executives to purchase 12 million of the companys $1 par common shares within...
-
Consider an investor's choice of a farm unit in the Corn Belt, one in the California Central Valley, or the one in the Great Plains region. An investor added these three assets in one portfolio. The...
-
Refine the method of example 10 by showing that distance L between the parallel planes Ax + By + Cz = D and Ax + By + Cz = E is D E
-
A service provider decided to restructure allocation of channels by selecting a cluster with 4-cell format as its basic building block. What will be impact of channel borrowing if each cell employs...
-
After the positrons were annihilated, the energy density of the universe was dominated by the photons and the neutrinos. Show that the energy density in that era was given by \(u_{\text {total...
-
Retail Inventory Method Presented below is information related to McKenna Company. (a) Compute the ending inventory at retail. (b) Compute a cost-to-retail percentage (round to two decimals) under...
-
Stage duration (hours) for immatures of 2 species of blow fly when reared at several temperatures; e.g., "time to complete" the stage. The threshold temperature for all species is 10C.--------1. What...
-
In application, sensitivity analysis is a useful and practical way to Group of answer choices determine the feasible region. find an extreme corner point. consider mathematical shortcomings. consider...
-
John Thompson, CEO of WVU, Inc., wants to raise $5 million in a private equity in his early stage venture. John projects net income of $11 million in year five (five years from now) and knows that...
-
So, if Im correct that with this law in place it protcts the righs more of a tenant? A landlord is not authorized to collect a security deposit that exceeds the amount of 2 months' rent in a single...
-
The North Melbourne Manufacturing Company Ltd belongs to the Capital Goods industry group under the Industrials sector. Identify three firms that belong to the same industry group listed on the ASX,...
-
On January 2, 2019, Best Corporation issued 3,000 shares of its $15 par-value common stock for cash at $36 a share. Prepare a journal entry to record the issuance of the stock. Journal entry...
-
A toy car is moving on a circular banked incline having an incline angle of 25.0. If the maximum speed the car can travel without slipping is 7.50 m/s, determine the radius (m) of the circular bank....
-
You are the CFO of Motor City Spirits Co. in Detroit. The owner is considering two new products, a Rye or a Bourbon, but can only support one. Both products require some upfront costs and have...
-
What are the historical origins and values of family law in Canada? In British Columbia which courts deal with the family law issues of guardianship support and division of property What are the...
-
The first national bank pays a 4% interest rate compound continuously. The effective annual rate paid by the bank is __________. a. 4.16% b. 4.20% c. 4.08% d. 4.12%
-
You are the new controller for Moonlight Bay Resorts. The company CFO has asked you to determine the company's interest expense for the year ended December 31, 2018. Your accounting group provided...
-
Listed below are 10 causes of temporary differences. For each temporary difference, indicate (by letter) whether it will create future deductible amounts (D) or future taxable amounts (T). Temporary...
-
Swathmore Clothing Corporation grants its customers 30 days' credit. The company uses the allowance method for its uncollectible accounts receivable. During the year, a monthly bad debt accrual is...
-
III A \(75 \mathrm{~kg}\) passenger is seated in a cage in the Sling Shot, a carnival ride. Giant bungee cords are stretched as the cage is pulled down, and then they rebound to launch the cage...
-
The forces in Figure P5.10 are acting on a \(2.0 \mathrm{~kg}\) object. What is \(a_{x}\), the \(x\)-component of the object's acceleration? 4.0 N 2.0 N 3.0 N FIGURE P5.10 13.0 N
-
Riders on the Power Tower are launched skyward with an acceleration of \(4 g\), after which they experience a period of free fall. What is a \(60 \mathrm{~kg}\) rider's apparent weight a. During the...
Study smarter with the SolutionInn App