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shtirl [24]
3 years ago
12

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

d 15 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 $6 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, 2019.
Business
1 answer:
zubka84 [21]3 years ago
3 0

Answer: See explanation

Explanation:

1. Determine the total compensation cost pertaining to the restricted shares.

This will be:

= 15 million × $6

= $90 million

2. Prepare the appropriate journal entries related to the restricted stock through December 31, 2022.

December 31, 2021

Dr Compensation expense = 90/2 = $45 million

Cr Paid-in capital—restricted stock = $45 million

December 31, 2022

Dr Compensation expense = $45 million

Cr Paid-in capital—restricted stock = $45 million

December 31, 2022

Dr Paid-in capital—restricted stock = $90 million

Cr Common stock = $15 million

Cr Paid-in capital—excess of par = $75 million

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Answer:

B. 4 doz  

Explanation:

\text{Amount of eggs}= \text{9 cowry shells} \times \dfrac{\text{1 doz eggs}}{\text{2 cowry shells}} = \text{ 4.5 doz eggs}

"They" won't let you buy a fraction of a dozen, so you can afford to buy only 4 doz eggs.

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3 years ago
Brandy enterprises discarded a computer that was fully depreciated and had no residual value. as a result of this​ transaction,
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The likely result of having to have a discarded computer that was fully depreciated and the residual value is discarded as it is not present, the transaction will likely cause a loss equal in regards to the residual value that may be recognized.
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3 years ago
The risk-free rate is 5%; Stock A has a beta of 2.0; Stock B has a beta of 1.0; and the market risk premiumis positive. Which of
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Answer:

C) If Stock B's required return is 11%, then the market risk premium is 6%.

Explanation:

In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

The (Market rate of return - Risk-free rate of return)  is also known as the market risk premium

If we take the required return is 11%, so the market risk premium would be for stock B

11% = 5% + 1 × Market risk premium

11% - 5% = Market risk premium

So, the market risk premium would be 6%

If we take the required return is 11%, so the market risk premium would be for stock A

11% = 5% + 2 × Market risk premium

11% - 5% = Market risk premium

So, the market risk premium would be 3%

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3 years ago
High Country Corporation acquired two inventory items at a lump-sum cost of $80,000. The acquisition included 6,000 units of pro
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Answer:

$9,000

Explanation:

Calculation for the amount of gross profit that should be recognize

First step is to calculate the

A's sale value = 6,000 unit*12 per unit

A's sale value = $72,000

Second Step is to calculate B's sale value

B's sale value = 14,000 units*4 per unit

B's sale value= $56,000

Third step is to calculate the Total sale value

Total sale value = $72,000 + $56,000

Total sale value= $128,000

Fourth Step is to calculate the Cost of goods sold of A for 6,000 units and 2,000 units

Cost of goods sold of A for 6,000 units = ($72,000/$128,000) * $80,000

Cost of goods sold of A for 6,000 units = 0.5625*$80,000

Cost of goods sold of A for 6,000 units= $45,000

Cost of goods sold of A for 2,000 units = $45,000*2,000/6,000

Cost of goods sold of A for 2,000 units = $15,000

Last step is to calculate the Gross profit of A for 2,000 units

Gross profit of A for 2,000 units = (2,000*12 per units) - 15,000

Gross profit of A for 2,000 units = $24,000 - $15,000

Gross profit of A for 2,000 units = $9,000

Therefore the amount of gross profit that should be recognize will be $9,000

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