1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
enot [183]
3 years ago
11

Hammerstein Corporation offers a variety of share-based compensation plans to employees. Under its restricted stock award plan,

the company, on January 1, 2021, granted 2 million of its $1 par common shares to various division managers. The shares are subject to forfeiture if employment is terminated within four years. The common shares have a market price of $20 per share on the award date.
Required:

1. Determine the total compensation cost from these restricted shares. 2. & 3. Prepare the appropriate journal entries. 4. Suppose a 15% forfeiture rate was expected prior to vesting. Determine the total compensation cost, assuming the company follows the fair value approach and chooses to anticipate forfeitures at the grant date.
Business
1 answer:
olchik [2.2K]3 years ago
8 0

Answer:

A. $40,000,000

B.No entry

C.Dr Compensation Expense 10,000,000

Cr Paid-In-Capital- Restricted Stock 10,000,000

D. $34,000,000

Explanation:

A.$20 * 2M Shares

= $40,000,000

B. No Entry

C.

Dr Compensation Expense 10,000,000

($40,000,000/ 4yrs)

Cr Paid-In-Capital- Restricted Stock 10,000,000

D.$20 * 2M Shares * 85%

= $40,000,000*85%

= $34,000,000

You might be interested in
A project professional has just been assigned manager of a project to develop a new advertising campaign for an established prod
german

Answer:

<u>Establish project priorities</u>

Explanation:

<em>Remember</em>, we are told the project professional has been assigned to manage a project, therefore going by the guiding steps when defining a project, the next and second step he should take is to establish project priorities.

In other words, he should draft out what tasks should be done first, those for later, and so forth in other to successfully achieve/finish the project's objective.

4 0
3 years ago
The consumer sector is the largest part of the macroeconomy. Please select the best answer from the choices provided T F
cricket20 [7]
The answer is true bc businesses depend on consumers buying their product
5 0
3 years ago
Recommend financial reporting and auditing-related reforms that would likely be effective in preventing or detecting frauds simi
abruzzese [7]

Answer:

The answer is stated below:

Explanation:

If the SEC and the AICPA, worked altogether in order to share the information, they might have detected the fraud prior. The case states that the Madoff Securities does not required to submit the peer review program to AICPA as Friehling, had recorded that he did not perform or conduct any audits.

Recommendation

1. The policy execution for the exchange of the information among the two firms would be useful to detect the fraud.

2. The PCAOB should spend more resources an attending the hotline of whistle blowing through executing the policies which need certain complaints to be addressed effectively.

3. The firms or company should have done more in order to verify the financial statements assertions, which surrounds the investments. The PCAOB need to execute the policy that require the companies (such as Madoff Securities) to correctly answer the inquiries of the auditor.

6 0
3 years ago
Which of these is a characteristic of certificates of deposit (CDs)?
masha68 [24]

Answer:

They last for a certain period of time

Explanation:

Typically Certificates of Deposit are offered if the set amount is deposited and kept through the stated amount of time. (The length of the CD can be anywhere from 18 months to 3 years [most popular])  When the money is removed short of the stated time period a penalty is taken from the value of the CD.

5 0
3 years ago
Read 2 more answers
If consideration is received before a contract is identified and the consideration is nonrefundable, revenue may be recognized i
Studentka2010 [4]

Answer: Any of these answer choice is correct.

Explanation:

You didn't put the options to the question. The options are:

• There is no remaining obligation to transactions goods.

• The contract has been terminated.

• Goods have been delivered.

• Any of these answer choice is correct.

When consideration has been received before a contract is identified and the consideration is nonrefundable, then the revenue may be recognized when:

• There is no remaining obligation to transactions goods.

• The contract has been terminated.

• Goods have been delivered

Therefore, the correct option is any of the answer choice is correct.

3 0
3 years ago
Other questions:
  • Which of the following is a subsystem of computers providing access to the Internet and offering multimedia and linking capabili
    8·1 answer
  • Erp is software designed for _____ and ______ business processes.
    7·1 answer
  • What happens if the amount of uncollectible account expense is overstated at year end?
    15·1 answer
  • What techniques overcome resistance and help build credibility? check all that apply. listing names of satisfied users using a c
    11·1 answer
  • Forms used by the medical practice should be updated __________ and the codes verified with the current year's diagnostic and pr
    13·1 answer
  • The practice of a message receiver giving back in his or her own words what he or she believes a sender said is called feedback.
    13·1 answer
  • In general, firms should use their weighted average cost of capital (WACC) to evaluate capital budgeting projects because most p
    13·1 answer
  • If ap sells the toaster ovens for $16 each, how many units will it have to sell to make a profit of $60,000 before taxes?
    14·2 answers
  • Even though Yvonne is terrible at playing tennis, she could still consider it an interest of hers.
    7·2 answers
  • Keynesian theory is based on the concept that saving and consumption are influenced primarily by real current disposable income.
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!