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oee [108]
3 years ago
11

On January 1, 2016, Telespace Inc. grants 6 million non-qualified stock options to its employees. The stock options have exercis

e price of $20, which is equal to the grant-date price. All options will vest in three years. The grant date fair value of the options is $15 per option. All 6 million options are expected to vest. On January 1, 2019, all 6 million vested options are exercised when the stock price is $50. The applicable tax rate for all periods is 40%. The company has sufficient taxable income for the stock option tax deductions to reduce income taxes payable in all periods.
How much compensation expense should Telespace recognize for the year of 2016?
Business
1 answer:
Zina [86]3 years ago
4 0

Answer:

$30,000,000

Explanation:

compensation expense = total number of stocks granted x grant date value = 6,000,000 x $15 = $90,000,000

this expense will be allocated proportionally during the vesting period = $90,000,000 / 3 years = $30,000,000 per year

compensation expense per year (2016, 2017, 2018) = $30,000,000

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The length of time to perform an activity is often dependent upon who will do that work.
Alex787 [66]

Answer:

True

Explanation:

6 0
3 years ago
Read 2 more answers
Which of the following issues can be offered to the public under the 1933 Act?
dedylja [7]

Answer:

Which of the following issues can be offered to the public under the 1933 Act?

1. An exempt security.

2. A security registered under the Act.

Explanation:

The security's act of 1933 was formulated and passed into law in 1933 to protect investors after the stock market crash of 1929. The law had two major objectives; to enable transparency especially in the financial statements so that investors can make decisions after considering all aspects and also to provide regulations against misrepresentation to discourage cases of fraud in the securities markets.

The security's act of 1933 provided legislation on the sale of securities which was initially governed by the state laws. The law required the companies to register with the Securities and Exchange Commission (SEC) for full disclosure to potential investors. The information is provided to SEC and the potential investors in the form of a prospectus and a statement of registration.

The following issues are including in what can be offered to the public under this act, namely;

1. An exempt security.

2. A security registered under the Act.

However, the SEC does not approve a prospectus therefor issue number three is not true.

3 0
3 years ago
You are planning to save for retirement over the next 15 years. To do this, you will invest $1,100 a month in a stock account an
love history [14]

Answer:

C  $ 3,113.036

Explanation:

First step will be calcualte the future value of the bond and stock funds:

C \times \frac{1+r)^{time} -1}{rate} = PV\\

C       1,100

time 180 ( 15 years x 12 months)

rate 0.005833333 (7% divided into 12 months)

1100 \times \frac{(1+0.00583333)^{180} -1 }{0.00583333} = PV\\

PV $348,658.5264

C \times \frac{(1+r)^{time} -1}{rate} = PV\\

C        500

time 180

rate 0.003333 (4% divided by 12 months)

500 \times \frac{(1+0.00333)^{180} -1}{0.00333} = PV\\

PV $123,045.2441

total fund: 348,658.5264 + 123,045.2441 = 471,703,7705

Then this will be placed to yield 5% and we will do motnly withdrawals:

we need to calcualte the PTM of this annuity:

PV \div \frac{1-(1+r)^{-time} }{rate} = C\\

PV  $471,703.77

time 240

rate 0.004166667

471703.77 \div \frac{1-(1+0.00416667)^{-240}}{0.00416667} = C\\

C  $ 3,113.036

6 0
3 years ago
Use the following information to answer this question. Windswept, Inc. 2017 Income Statement ($ in millions) Net sales $ 10,000
zmey [24]

Answer:

20.50 times

Explanation:

Cash coverage ratio = (EBIT + Depreciation) / Interest paid

Cash coverage ratio = ($1,640+$410) / $100

Cash coverage ratio = $2,050 / $100

Cash coverage ratio = 20.50 times

So, the cash coverage ratio for 2017 is 20.50 times

5 0
3 years ago
The Gomez Trust is required to distribute $80,000 annually, split equally between its two income beneficiaries, Lara and Byron.
Maru [420]

Answer:

A.$30,000

B.$30,000

C.First-tier of $30,000 to both beneficiarie

Explanation:

Gomez Trust

a. (1/2×DNI $60,000)

=$30,000

b.$30,000

c.First-tier of $30,000 to both beneficiarie in which First-tier distributions can be said to be those distributions which are often composed of trust accounting income that is required to be distributed currently.

Hence there are no second-tier distributions because the tier system only accounts for the annual DNI amounts, and all of the $60,000 DNI are been distributed on the first tier.

6 0
3 years ago
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