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Lana71 [14]
2 years ago
5

Wall Drugs offered an incentive stock option plan to its employees. On January 1, 2021, options were granted for 75,000 $1 par c

ommon shares. The exercise price equals the $6 market price of the common stock on the grant date. The options cannot be exercised before January 1, 2024, and expire December 31, 2025. Each option has a fair value of $1 based on an option pricing model. Which is the correct entry to record compensation expense for the year 2021
Business
1 answer:
harkovskaia [24]2 years ago
5 0

Answer:

Dr Compensation expense $12,500

Cr Paid-in capital - stock options $12,500

Explanation:

Preparation of the correct entry to record compensation expense for the year 2021

Based on the information given the correct journal entry to record compensation expense for the year 2021 is :

Dr Compensation expense $12,500

Cr Paid-in capital - stock options $12,500

[(75,000 x $1)/6]

(Being to record compensation expense for the year 2021)

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What is implication for the Government in the tax policy ?
Slav-nsk [51]

Answer:

ax policy is the choice by a government as to what taxes to levy, in what amounts, and on whom. It has both microeconomic and macroeconomic aspects. The macroeconomic aspects concern the overall quantity of taxes to collect, which can inversely affect the level of economic activity; this is one component of fiscal policy.

Explanation:

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5 0
3 years ago
Read 2 more answers
The following information was taken from the records of Marigold Inc. for the year 2020: Income tax applicable to income from co
ivolga24 [154]

Answer:

Net income is $312,610.

Explanation:

This can then be prepared as follows:

Marigold Inc.

Single-Step Income Statement

For the Year 2020

<u>Particulars                                                               $                        $ </u><u>        </u>

<u>Revenue</u>

Sales Revenue                                               1,634,000

Rent revenue                                                      34,400

Gain on sale Of equipment                          <u>      81,700  </u>

Total revenue                                                                          1,750,100

<u>Expenses</u>

Cost of goods sold                                         (731,000)

Selling expenses                                           (258,000)

Administrative expenses                              (206,400)

Loss on write-down of inventory               <u>     (51,600)  </u>

Total expenses                                                                  <u>   (1,247,000)  </u>

Operating income before tax                                                 503,100

Tax on income from continuing

operations                                                                         <u>     (160,820)  </u>

Income from operation after tax                                           342,280

<u>Other income (loss ) (net of tax) </u>

Unrealized holding gain on

available-for-sale securities (net of tax)                               <u>   12,900  </u>

Income from continuing operations

after tax                                                                                   355,180  

<u>Discontinued operations</u>

Loss on discontinued operations

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Tax on loss on discontinued operations       <u>  21,930  </u>

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5 0
2 years ago
The Allowance for Doubtful Accounts account has a year-end credit balance, prior to adjustment of $500. The bad debts are estima
Elan Coil [88]

Answer:

Estimated balance of Doubtful Account after adjusting entry = $4,200

Explanation:

Given:

The credit balance of Doubtful Account = $500

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After adjusting entry , Total amount credited in Allowance for Doubtful Accounts is $4,200

6 0
2 years ago
A strategy of ____________ reciprocating both the frequency and magnitude of the other bargainer's concessions was found to be m
schepotkina [342]

Answer:

Always and less

Explanation:

Strategy: The strategy is a plan to do something with respect to achieve the company objectives or individual objective

Without preparing the strategy no one could accomplish their target.

For frequency and magnitude of other bargainer concessions, the strategy should always be reciprocatinvg and found to be more effectove as if concessions are obtained from other bargainer that involves less reciprocation

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3 years ago
Which of the following is true of source documents in an accounting information​ system?
MA_775_DIABLO [31]

Answer:

a. Source documents provide control and reliability in an accounting information system.

Explanation:

The source documents are the documents that support all types of business transaction. It can be in terms of bank statement, purchase order, sales order, supplier invoices, etc. It can also known as vouchers

With the help of the source documents the accounting system provides the reliable and controlling of transactions

This is the first step to verify the transactions after that recording, posting of transactions could be done.

3 0
3 years ago
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