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AleksAgata [21]
2 years ago
13

Allied Paper Products, Inc., offers a restricted stock award plan to its vice presidents. On January 1, 2021, the company grante

d 20 million of its $1 par common shares, subject to forfeiture if employment is terminated within two years. The common shares have a market price of $7 per share on the grant date. Required: 1. Determine the total compensation cost pertaining to the restricted shares. 2. Prepare the appropriate journal entries related to the restricted stock through December 31, 2022.
Business
1 answer:
Marizza181 [45]2 years ago
3 0

Answer:

See below

Explanation:

1. Total compensation pertaining to the restricted shares

= Fair value per share × Shares granted

= $7 × 20,000,000

= $140,000,000

Therefore, the total compensation cost pertaining to the restricted shares is $140,000,000

2. Journal entries as at December 31, 2021 (in million dollars)

Dr Compensation expense ($140,000,000 ÷ 2 years) $70

Cr Paid- in capital - restricted stock $70

Journal entries as at December 31, 2022 (in million dollars)

Dr Compensation expense ($140,000,000 ÷ 2 years) $70

Cr Paid in capital - restricted stock $70

Dr Paid in capital restricted stock $140

Cr Common stock (20 million shares × $1 par) $20

Cr Paid in capital in excess of par (remainder) $120

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Answer:

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Explanation:

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It can be cumulative and non-accumulate.

Cumulative <em>simply implies that should the company misses the payment of dividend in a particular year such unpaid dividend would be carried carried forward and paid in arrears in the following year/</em>

Non-cumulative i<em>s the exact opposite of the case . Here, unpaid dividends are not paid in arrears in fact such are forfeited for life.</em>

Dividend in Year 1

Dividend paid in Year 1 was $ 4000 but ought to be $5,000 (5%× 10,000 × $10). An arrear of $1000

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Note that the unpaid dividend of $1,000 in year 1 is lost forever

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3 years ago
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2 years ago
Curt can be paid in one of two ways for the furniture he sells. Plan​ A: Salary of ​$350 per​ month, plus a commission of​ 10% o
Eduardwww [97]

Answer:

for $16000 plan B is better than A

Explanation:

We are searching for the stage where Plan A's compensation is less than Plan B's compensation.

Plan A < Plan B

 

let total of Curt's sales  be the x,

x is the basis of the commission under Plan A, but the first 5000 of sales are excluded i.e  (x - 5000) from the basis of commissions under Plan B.

 

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The discounted payback period rule states that a company will accept a project if?
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According to the "Discounted Payback Period Rule," a business will approve a project if the calculated payback is shorter than a predetermined period of years.

Definition of Period of Repayment

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<h3>What are NPV and payback period?</h3>

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4 0
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Amazon Company uses predetermined departmental overhead rates based on direct labor cost to apply manufacturing overhead to jobs
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Answer:

a. $270,000

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