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Pani-rosa [81]
3 years ago
7

LCI Cable Company grants 2.9 million performance stock options to key executives at January 1, 2021. The options entitle executi

ves to receive 2.9 million of LCI $1 par common shares, subject to the achievement of specific financial goals over the next four years. Attainment of these goals is considered probable initially and throughout the service period. The options have a current fair value of $20 per option.
Prepare the appropriate entry when the options are awarded on January 1, 2021.
Business
1 answer:
DanielleElmas [232]3 years ago
5 0

Answer:

On the date of grant of options-January 1 2021 no entries are required yet in the books of accounts

Explanation:

The value of the options granted to the key executives is computed as follows:

total options fair value=number of shares *current fair value per option

number of shares granted is 2.9 million

current fair value per option is $20

total options fair value=2,900,000*$20

                                    =$58,000,000

the total options value would recognized in the books over four year period on straight line basis =$58,000,000/4

                                   =$14,500,000

At 31 December 2021 for instance,the following entries would be passed:

Dr Compensation expense        $4,500,000

Cr Paid-in capital-stock options                       $4,500,000

However, on the date of grant of options-January 1 2021 no entries are required yet in the books of accounts

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Answer: Qualitative data cannot be recorded numerically at the initial stage, but can be later converted into numerical data for statistical purposes.

Quantitative data is conclusive in summary, can be recorded numerically first hand.

Explanation:

Qualitative data cannot be recorded numerically at the initial stage, but can be later converted into numerical data for statistical purposes.

Quantitative data is conclusive in summary, can be recorded numerically first hand.

Qualitative variables examples;

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Quantitative variables:

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2 years ago
Sabv Corporation's break-even-point in sales is $840,000, and its variable expenses are 75% of sales. If the company lost $34,00
zhuklara [117]

Answer:sales must have amounted to:$704,000

Explanation:

Contribution ratio = Sales ratio - Variable cost ratio

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Sales to break even = Fixed expenses / Contribution margin ratio

Therefore,

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Contribution margin can also be calculated as

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5 0
2 years ago
Why can wholesalers afford to offer trade discounts?
wariber [46]

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Wholesalers buy products from manufacturers at a lower price than other businesses because they receive discounts for volume buying.

Explanation:

I have no explanation really to say. Thats just the answer.

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When buyers will purchase exactly as much as sellers are willing to sell, what is the condition that has been reached?.
Vlad1618 [11]

Answer:

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