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SVEN [57.7K]
4 years ago
8

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

the company, on January 1, 2018, 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 $20.4 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 10% 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:
LekaFEV [45]4 years ago
5 0

Answer and Explanation:

As per the data given in the question,

1)

Fair value per share = $20.4

Number of Share = 2 million

Fair value of award = Fair value per share ×Number of Share

= $20.4 × 2 million

= $40.8 million

2) No Entry

3)

Compensation expense($40.8 million÷4 years) $10.2 million

          To Paid in capital - restricted stock($20.4-$10.2) $10.2  million

(Being the compensation expense is recorded)

4)

Fair value per share = $20.4

Share granted = 2 million

(100%-10%) forfeiture rate = 90%

fair value of award = $20.4×2×90%

= $36.72 million

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Answer:

B)  Implement policies to encourage greater consumption.

Explanation:

The Paradox of thrift says that an increase in autonomous saving leads to a decrease in aggregate demand and thus a decrease in gross output which will, in turn, lower total saving due to that total saving may fall because of individuals' attempts to increase their saving, Therefore, to avoid the paradox of thrift policies to encourage consumption must be implemented.

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4 years ago
Cost-push inflation occurs when:
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Short answer D
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3 years ago
One of your customers is delinquent on his accounts payable balance. You’ve mutually agreed to a repayment schedule of $500 per
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Answer:

Here we need to find the length of an annuity. We know the interest rate, the PV, and the payments. Using the PVA equation:

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Now we solve for t:

1/1.0155t = 1 − {[($14,500)/($500)](0.0155)}

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7 0
3 years ago
Select each of the tasks associated with opening a checking account.
garri49 [273]

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Customers who open checking account consent to make deposits into the account, and in return, the bank is obligated to carry out their payment instructions.

Before creating a checking account, it is important to weigh your options and find out whether or not the entity will charge you for maintaining the account and any related items. Being of legal age and fulfilling the conditions established by the chosen financial institution are the second prerequisites you must meet in order to open a checking account.

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5 0
2 years ago
From the end of 2010 to the end of 2011, M1 increased from $2,006 billion to $2,311 billion. By what percentage did M1 increase?
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Answer:

15.20%

Explanation:

The computation of the M1 increase is shown below:

= (M1 End of the year 2011  - M1 end of the year 2010) ÷ M1 End of the year 2010

= ($2,311 billion - $2,006 billion) ÷ ($2,006 billion)

= 15.20%

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