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Akimi4 [234]
3 years ago
8

On January 1, 2020, Swifty Corporation established a stock appreciation rights plan for its executives. It entitled them to rece

ive cash at any time during the next four years for the difference between the market price of its common stock and a pre-established price of $20 on 124000 SARs. Current market prices of the stock are as follows:
January 1, 2020 $36 per share
December 31, 2020 39 per share
December 31, 2021 31 per share
December 31, 2022 34 per share

Compensation expense relating to the plan is to be recorded over a four-year period beginning January 1, 2020. On December 31, 2022,50,000 SARs are exercised by executives. What amount of compensation expense should Korsak recognize for the year ended December 31, 2022?

a. $312,000
b. $780,000
c. $1,140,000
d. $2,340,000
Business
1 answer:
OleMash [197]3 years ago
4 0

Answer:

$620,000

Explanation:

The amount of compensation expense that Korsak should recognize for the year ended December 31, 2022:

= [($34-$20)*124,000*3/4] - [($31-$20)*124,000*2/4]

= [$14*124,000*3/4] - [$11*124,000*2/4]

= $1,302,000 - $682,000

= $620,000

Note: The answer is not included in the option above

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A corporation has 12,000 shares of $20 par stock outstanding that has a current market value of $150. If the corporation issues
belka [17]

Answer:

False

Explanation:

In a 4-for-1 stock split, for every 1 share held by shareholders, it is multiplied to 4.

if outstanding shares is 12,000, after the split the shares outstanding pictures becomes 12,000 x 4 = 48,000

Market value of shares outstanding = $150 / 4 = $37.50

5 0
3 years ago
Pensacola Inc. exchanged old equipment for new equipment in two exchange transactions. Each transaction has commercial substance
gayaneshka [121]

Answer:

$69,300

Explanation:

The computation of the amount of the new equipment for equipment A is shown below;

Since the transaction has the commercial substance and also the cash is received

So, the amount of the new equipment is

= Fair value - cash received

= $81,100 - $11,800

= $69,300

Hence, the amount of the new equipment is $69,300

7 0
3 years ago
Moore's law states that every 18 months, the computing speed of a microchip doubles.
horrorfan [7]

Answer: The price level falls and output rises.

Explanation:

According to Moore's law, it is stated that the computing speed of a microchip doubles every 18 months. According to Moore, this will increase thespeed and capability of computers and also bring about lesser pay for the computers.

The effect of this on the economy is that it will lead to a fall in price level and increase in output as there will be faster and cheaper production. This can be shown in the diagram attached.

5 0
3 years ago
santa klaus toys just paid a dividend of $2.10 per share. the required return is 11.5 percent and the perpetual dividend growth
Neporo4naja [7]

The value of stock after 5 years from today will be $29.48 considering the dividend paid and growth rate.

Given information:

Dividend per share = $2.10

Required rate of return = $11.5

Growth rate = 3% = 0.03

Dividend after 5 years = 2.10 (1+0.03) ^6 =$2.506

Value of stock= Dividend per share / (Required rate of return-growth rate)

Value of stock = 2.506/ (0.115-0.03) = $29.48

A stock is a colloquial phrase for any company's equity certificates. But at the other hand, a share alludes to a specific company's stock certificate. You become such a shareholder if you acquire shares of a particular corporation. There are two sorts of stocks: ordinary and preferred. The distinction is that whereas the owner of the former can exert right to vote in company decisions, the latter doesn't really. However, even before dividends are distributed to other shareholders, preferred shareholders have a lawful authority to a specific amount of dividend payouts.

Learn more about stocks here:

brainly.com/question/27385142

#SPJ4

5 0
1 year ago
Your parents are giving you $205 a month for 4 years while you are in college. At an interest rate of .48 percent per month, wha
luda_lava [24]

Answer:

$8,770.00

Explanation:

In this question we use the present value formula i.e shown in the attachment below:

Data provided in the question

Future value = $0

Rate of interest = 0.48%

NPER = 4 years × 12 months = 48 months

PMT = $205

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after solving this, the answer would be $8,770.00

7 0
4 years ago
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