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
Yanka [14]
3 years ago
13

On June 1, year 2, Oak Corp. granted stock options to certain key employees as additional compensation. The options were for 1,0

00 shares of Oak's $2 par value common stock at an option price of $15 per share. Market price of this stock on June 1, year 2, was $20 per share. The options were exercisable beginning January 2, year 3, and expire on December 31, year 4. On April 1, year 3, when Oak's stock was trading at $21 per share, all the options were exercised. Oak uses the intrinsic method of accounting for stock option plans. What amount of pretax compensation should Oak report in year 2 in connection with the options
Business
1 answer:
Dimas [21]3 years ago
3 0

Answer:

Since the options were granted at an exercise price of $15 when the market value of the shares was $20, total compensation under the intrinsic method would be $5 per share on 1,000 shares or $5,000. Since the options are exercisable on 1/2/X2, the $5,000 in compensation would all be recognized n 20X1.

Explanation:

You might be interested in
The following is the post-closing trial balance for the Whitlow Manufacturing Corporation as of December 31, 2015.
pishuonlain [190]

Answer:

See explanation section

Explanation:

See the images to get the answer

4 0
3 years ago
Asking yourself "What can I do to build a loyal customer base?" is an example of
MakcuM [25]

Correct answer is C, Creativity.

Asking yourself, What can i do to build a loyal customer base?, is an example of Creativity.

When a person in an organization is creative and wants to build a loyal customer base, he asks himself that how can he build it. He finds out ways to build a loyal customer base. He innovates, he takes out the best creativity out of him. When he is focusing on asking himself the solutions, he is basically creative who is seeking answers within himself.

4 0
3 years ago
Explain why different communication methods are used in the business environment?​
Verizon [17]

Answer:

Different communication methods are used in different circumstances because sometimes a certain method will be more effective in terms of cost, time and impact, and sometimes it will be more appropriate.

Explanation:

4 0
2 years ago
Electronic Distribution has a defined benefit pension plan. Characteristics of the plan during 2021 are as follows: ($ millions)
ruslelena [56]

Answer:

Please see below

Explanation:

1. Calculate the pension expense for 2021.

($ millions)

Service cost. $50

Interest cost. $30

Expected return on the plan assets

(1,300 × 6%). ($78)

Amortization of prior service cost $

Amortization of net gain or loss - AOCI $

Pension expense $2

2. Journal expense to record pension expense, gains or losses, prior service cost, funding and payment of benefits for 2021.

1.

Pension expense. Dr $2

Plan assets [expected return on assets] Dr $78

To PBO (50 + 30) Cr $80

(To record the pension expense)

2.

Prior service cost - OCI Dr $18

To PBO Cr $18

(To record the prior service cost)

3.

PBO Dr $36

To Gain - OCI Cr $36

(To record the gain from change in actuarial assumption)

4.

Loss- OCI [1,300 × 6%] - ($23). Dr $55

To Plan assets Cr. $55

(To record the gain or loss on assets)

5.

Plan assets. Dr $40

To Cash Cr. $40

(To record the funding)

6.

PBO Dr $46

To Plan assets. Cr 46

(To record the retiree benefits)

3. What amount will electronic distribution report in its 2021 balance sheet as a net pension asset or net pension liability.

PBO balance, Jan 1 $530

Service cost. $50

Interest cost. $30

Gain from change in actuarial assumption. ($36)

Prior service cost(New). $18

Benefit paid ($46)

PBO balance, December 31. $546

Plan assets balance, Jan 1. $300

Actual return on plan assets $23

Contributions $40

Benefits paid ($46)

Plan assets balance, December 31 $317

PBO balance, December 31 $546

Plan assets balance, December 31 $317

Net pension liability. $229

4 0
3 years ago
A small business owner has two employees but each employee has a separate cash register drawer. this situation can be viewed as
Tanzania [10]
When a small business owner has two employees but trusts each one to have their own cash register and handle the money of the business separately, that means that the owner supports the establishment of responsibility. One instance where this could happen is at a small deli or coffee shop.
5 0
3 years ago
Read 2 more answers
Other questions:
  • Because of the adverse selection problem loading...​:
    5·1 answer
  • Which of the following statements is true? Group of answer choices A perfectly competitive firm that seeks to maximize profits w
    9·1 answer
  • Prepare the journal entry, if any, required to record each of the initial business activities on September 1. (If no entry is re
    6·1 answer
  • Suppose the income tax rate is 0 percent on the first $10,000; 10 percent on the next $20,000; 20 percent on the next $20,000; 3
    11·2 answers
  • Limon, an agent for Mindwonder Games LLC, executes an unau-thor-ized contract with NOW Marketing, Inc The deal is highly ad-vant
    11·1 answer
  • Government transfer payments:A) are included as part of government purchases, G.B) can be viewed as negative tax payments, T.C)
    11·1 answer
  • Good Time Company is a regional chain department store. It will remain in business for one more year. The probability of a boom
    6·1 answer
  • The Fed promotes secrecy by not releasing the minutes of the FOMC meetings to Congress or the public immediately. Discuss the ef
    5·1 answer
  • What do you know, or have heard, about the U.S. Economy currently?
    13·2 answers
  • A company acquires a natural resource for and spends another on development of the site and for a nonmovable tangible asset inst
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!