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MatroZZZ [7]
3 years ago
13

On October 15, 2020, the board of directors of Ensor Materials Corporation approved a stock option plan for key executives. On J

anuary 1, 2021, 32 million stock options were granted, exercisable for 32 million shares of Ensor's $1 par common stock. The options are exercisable between January 1, 2024, and December 31, 2026, at 80% of the quoted market price on January 1, 2021, which was $30. The fair value of the 32 million options, estimated by an appropriate option pricing model, is $6 per option. Ensor chooses the option to recognize forfeitures only when they occur.
Ten percent (2.6 million) of the options were forfeited when an executive resigned in 2022. All other options were exercised on July 12, 2025, when the stock’s price jumped unexpectedly to $25 per share.Required:1. When is Ensor’s stock option measurement date?2. Determine the compensation expense for the stock option plan in 2021. (Ignore taxes.)3. Prepare the journal entries to reflect the effect of forfeiture of the stock options on Ensor’s financial statements for 2022 and 2023.5. Prepare the journal entry to account for the exercise of the options in 2025.
Business
1 answer:
SashulF [63]3 years ago
4 0

Answer:

1. The Ensor's stock measurement date is January 01, 2021

2. Compensation expense for the stock option is $50 million

3. Please see journal entry in the explanation below.

Explanation:

1. It was clearly indicated in the question that on January 1, 2021 , 32 million stock options were granted hence measurement date is ; 1st of January, 2021

2. The fair value per stock option is $6

Therefore, total compensation expenses = $6 × 25 million

= $150 million

Since the options are exerciseable between 01/01/2024 and 01/01/2026

The period for vesting will be 3 years from 01/01/2021 - 31/12/2023

Therefore, the compensation expense for the stock option in year 2021 = Total compensation expense/ Vesting period

= $150 million /3

= $50 million

3. Since 2.6 million(10%) were forfeited, 90% represent the remaining unforfeited. I. e (100%-10%)=90%

In 2022, which is the second year of the vesting period, compensation expense would be;

Compensation expense of 2022 = (Total compensation expense * 90% * the order of the period / Number of period - Compensation expense of

2021

= $150 million *90% *2/3 - $50 million

=$40 million.

In 2023,

Dr Cr

Compensation expense. $40 million

Paid in capital stock options. $40 million

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Each machine must be run by one of 19 cross-trained workers who are each available 35 hours per week. The plant has 10 type 1 ma
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Answer:

The Linear programming model is given as below

Profit Function: P=90X+120Y+150Z

Constraints:

2X+2Y+Z\leq 400

3X+4Y+6Z\leq 240

4X+6Y+5Z\leq 320

\dfrac{2X+2Y+Z}{40}\leq 10

\dfrac{3X+4Y+6Z}{40}\leq 6

\dfrac{4X+6Y+5Z}{40}\leq 8

\dfrac{2X+2Y+Z}{35}+\dfrac{3X+4Y+6Z}{35}+\dfrac{4X+6Y+5Z}{35}\leq 19

Explanation:

As the question is not complete, the complete question is found online and is attached herewith.

Let the number of product 1 to be produced is X, that of product 2 is Y and product 3 is Z

so  the maximizing function is the profit function which is given as

P=90X+120Y+150Z

Now as the number of hours in a week are 40 and there are a total of 10 type 1 machines so the total number of machine 1 hours are 40*10=400 hours

As from the given table product 1 uses 2 machine hours of machine 1, product 2 uses 2 machine hours of machine 1 and product 3 uses 1 hour of machine 1 so

2X+2Y+Z\leq 400

Now as the number of hours in a week are 40 and there are a total of 6 type 2 machines so the total number of machine 2 hours are 40*6=240 hours

As from the given table product 1 uses 3 machine hours of machine 2, product 2 uses 4 machine hours of machine 2 and product 3 uses 6 hour of machine 2 so

3X+4Y+6Z\leq 240

Now as the number of hours in a week are 40 and there are a total of 8 type 3 machines so the total number of machine 3 hours are 40*8=320 hours

As from the given table product 1 uses 4 machine hours of machine 3, product 2 uses 6 machine hours of machine 3 and product 3 uses 5 hour of machine 3 so

4X+6Y+5Z\leq 320

Now as the machine 1 is used as 2X+2Y+Z in a week and the week is of 40 hours so the number of machines to be used are given as

\dfrac{2X+2Y+Z}{40}\leq 10

Now as the machine 2 is used as 3X+4Y+6Z in a week and the week is of 40 hours so the number of machines to be used are given as

\dfrac{3X+4Y+6Z}{40}\leq 6

Now as the machine 3 is used as 4X+6Y+5Z in a week and the week is of 40 hours so the number of machines to be used are given as

\dfrac{4X+6Y+5Z}{40}\leq 8

Now the workers are available for 35 hours so the worker available at the machine 1 is given as

\dfrac{2X+2Y+Z}{35}

That of machine 2 is given as

\dfrac{3X+4Y+6Z}{35}

That of machine 3 is given as

\dfrac{4X+6Y+5Z}{35}

As the total number of workers is 19 so the constraint is given as

\dfrac{2X+2Y+Z}{35}+\dfrac{3X+4Y+6Z}{35}+\dfrac{4X+6Y+5Z}{35}\leq 19

So the Linear programming model is given as below

Profit Function: P=90X+120Y+150Z

Constraints:

2X+2Y+Z\leq 400

3X+4Y+6Z\leq 240

4X+6Y+5Z\leq 320

\dfrac{2X+2Y+Z}{40}\leq 10

\dfrac{3X+4Y+6Z}{40}\leq 6

\dfrac{4X+6Y+5Z}{40}\leq 8

\dfrac{2X+2Y+Z}{35}+\dfrac{3X+4Y+6Z}{35}+\dfrac{4X+6Y+5Z}{35}\leq 19

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Answer:

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Ashley Anderson pays her HOA dues of $660 for the calendar year. She then sells her property and closes on June 15. What is the
Alenkinab [10]

Answer:

The amount of the prepaid portion that is due back to Ashley using the 12 month, 360 day proration is=$362.34

Explanation:

<em>Step 1: Determine HOA per day</em>

Use the expression below to determine HOA per day;

T=H×N

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T=$660

H=unknown

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Replacing;

660=H×360

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Using the same expression;

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