Answer:
The effect on earnings in the year after after the shares are granted to executives wpuld be that the earnings will be reduced by $80 million.
Explanation:
market price of common shares = $8 per share
number of common shares issued as RSUs = 30 million
total value of common shares issued as RSUs = 30 million*$8
= $240 million
the total compensation to executives is $240 million and the vesting period is 3 years.
Therefore, the total compensation should be expensed over a period of 3 years, this will reduce the earnings of the company by $80 million ($240 million/3) per year for 3 years.
Therefore, The effect on earnings in the year after after the shares are granted to executives wpuld be that the earnings will be reduced by $80 million.
The answer is false because they dont have to answer anything.
Answer:
capitalize the new cost as an asset to be amortized over future periods expected to benefit
Explanation:
A capitalized cost is a cost which is added to the cost basis of a fixed asset on a company's balance sheet. This Capitalized costs are sustained from the purchase or construction of fixed assets. Example of such costs are costs of materials, sales taxes, labor, transportation, and interest incurred to finance the construction of the asset.
This is usually done for items that would be used over a long period of time, therefore the item is capitalized and amortized or depreciated over its future periods.
Answer:
A) $7,000
Explanation:
Smith can deduct the $5,000 he donated to the church he attends. The art work donated to the local museum must be deducted at its basis, which is $2,000. Since he only purchased the painting 4 months before, the price increase will be considered a short term capital gain. Donated short term capital gain property must be deducted at basis.
The $1,000 he donated to the needy family is not deductible, since it wasn't a qualifying organization.
