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SVEN [57.7K]
3 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]3 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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2 years ago
The management at Burgerjoy, a small restaurant, finds that the lower the price of hamburgers, the more hamburgers are sold. Thi
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Answer:

Negative linear

Explanation:

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3 years ago
Researchers have raised questions absout poll results concerning support for penalty, the death such support is not absolute but
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a. the alternative punishments that are available  

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8 0
3 years ago
Department S had no work in process at the beginning of the period. 13,934 units of direct materials were added during the perio
love history [14]

Answer:

Option (B) is correct.

Explanation:

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= Transferred out + Ending balance

= 10,451 units × 100% + 3,483 units × 100%

= 10,451 + 3,483

= 13,934

Equivalent units of production(EUP) - conversion:

= Transferred out + Ending balance

= 10,451 units × 100% + 3,483 units × 36%

= 10,451 + 1,253.88

= 11,704.88

Material cost = \frac{Cost\ of\ direct\ material}{EUP\ material}\times units\ transferred\ out

Material cost = \frac{97,538}{13,934}\times 10,451

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Conversion cost = \frac{Direct labor+overhead}{EUP\ conversion}\times units\ transferred\ out

Conversion cost = \frac{51,257+8,903}{11,705}\times 10,451

Conversion cost = \frac{60,160}{11,705}\times 10,451

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Total cost of units completed during the period(10,451 units):

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= 73,157 + 53,715

= 126,872

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3 years ago
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Answer:

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