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patriot [66]
3 years ago
8

On the grant date, January 1st, 2015, the stock was quoted on the stock exchange at $63 per share. The fair value of the options

on the grant date was estimated at $15 per option. The amounts of compensation expense ABC should recognize with respect to the options during 2015, 2016, and 2017 are:
Business
1 answer:
Dafna11 [192]3 years ago
3 0

Answer:

2015 $31,500

2016 $31,500

2017 $31,500

Explanation:

Number of Options in total × Fair Value of the Stock per option

Where

Number of Options in total = 63

Fair Value of the Stock per option =15

Hence:

(63*100) ×$15

=$6,300 ×$15

= $ 94,500

Compensation expense will be:

2015, 2016, and 2017 will give us 3 years

= $94,500/3

= $31,500 for 2015, 2016, and 2017

Fair value of the options is said to be evaluated on grant date and expenditure is been recognised in 3 years because the employee will be working for 3 years which is from year 2015 to 2017

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4 0
3 years ago
The partnership of Larson, Norris, Spencer, and Harrison has decided to terminate operations and liquidate all business property
Volgvan

Answer:

          LARSON, NORRIS, SPENCER AND HARRISON

PREDISTRIBUTION PLAN FOR LIQUIDATING PARTNERSHIP

ASSET

Cash                           $28,250

liquidating expense   <u> (8,000)    </u>             20,250

Account receivable                                   44,000

inventory                                                    39,000

land and building                                       23,000

Equipment                                               104,000

Total Asset                                              230,250

Liabilities                                              <u>    (47,000)</u>

Net asset                                                 183,250

Asset to be distributed as follows:

Larson(15,000 - 1600)   13,400          

Norris(60,000 -2400)    57,600                        

Spencer(75,000 - 1600)  73,400                

Harrison(41,250-2400)      38,850            <u> ( 183,250)</u>

                                                                   <u>        0      </u>

Loss                                                        

share of liquidation expenses

Larson = 20%*8000 = 1600

Norris = 30%*8000 = 2400

Spencer = 20%*8000= 1600

Harrison = 30%*8000 = 2400

Explanation:

4 0
3 years ago
Matt Company uses a standard cost system. Information for raw materials for Product RBI for the month of October follows: Standa
Troyanec [42]

Answer:

$100 favorable

Explanation:

The computation of the material purchase price variance is shown below:

= Actual Quantity purchased × (Standard Price - Actual Price)

= 2,000 pounds × ($1.60 - $1.55)

=  2,000 pounds × $0.05

= $100 favorable

Simply we took the difference between the standard and the actual price, and then multiply it by the actual quantity purchased

6 0
3 years ago
Which of the following is not true regarding Depreciation? Group of answer choices Depreciation allocates the cost of a fixed as
Mariulka [41]

Answer: Depreciation expense reflects the decrease in market value each year.

Explanation:

Depreciation is the decrease in the value of an asset due to the passage of time. Overtime, the value of machineries reduce as a result of usage. Depreciation is therefore the reduction in the value of assets. Depreciation is also the method used tin reallocating the cost of a tangible assets over its useful life span. Firms depreciate assets for accounting and tax purposes. The reduction in the value of an asset has am effect on the balance sheet of an entity.

The answer to the question is the second option. Depreciation does not have anything to do with the market value. Other options are correct except for the second option which states that depreciation expense reflects the decrease in market value each year.

8 0
3 years ago
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Calculate the FV for the following 3 scenarios. Investment scenario #1:
kvv77 [185]

Answer:

?

Explanation:

5 0
3 years ago
Read 2 more answers
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