You are auditing a client who is under intense pressure to meet an earnings target. With respect to the purchasing process, which assertion would you be most concerned with
Solved
Show answers
More tips
- S Sport When will the Biathlon World Championships 2011 take place in Khanty-Mansiysk? Answers to frequently asked questions...
- H Health and Medicine Trading Semen for Money: Where Can You Sell and Why Would You Want to?...
- F Food and Cooking Homemade French Fries: The Ultimate Guide...
- H Health and Medicine How to Increase Blood Pressure without Medication?...
- S Style and Beauty Choosing a Hair Straightener: Specific Criteria to Consider...
- F Food and Cooking How to Make Polendwitsa at Home?...
- S Science and Technology When do we change our clocks?...
- L Leisure and Entertainment What to Give a Girl on March 8?...
- F Family and Home Is it Worth Knowing the Gender of Your Child Before Birth?...
- C Computers and Internet Why is Yandex s robot Bless.yandex.ru Important?...
Answers on questions: Business
- B Business The lays out the target markets and the value proposition that will be offered, based on an analysis of the best market opportunities. A. strategic marketing plan B. corporate...
- B Business Suppose you own a bookstore where you currently sell 22 John Grisham mystery novels per day at a price of $35 per book. However, if you were to reduce the price to $30,...
- B Business Clocktower Corporation reported net income for the current year of $370,000 and paid cash dividends of $50,000. Slide Company holds 40 percent of the outstanding voting...
- B Business What other factors might Manchester consider before outsourcing to Remnant?Before outsourcing to Remnant, Manchester might consider ▼ Manchester would want to be sure about...
- B Business Preventing highly valuable employees from leaving is an important strategy that cannot be ignored. It is not only the cost of losing these employees but also the loss of...
- B Business Imagine a hypothetical economy that has no foreign trade and is initially in equilibrium. Assume that the marginal propensity to consume (MPC) in this economy is 0.75,...
- B Business Ludwig Company s prepaid rent was $6,000 at December 31, 2017, and $15,000 at December 31, 2018. Ludwig reported rent expense of $22,000 on the 2018 income statement. What...
- B Business The following data is available for Wheels ‘N Spokes Repair Shop for 2022: Repair technicians’ wages $360,000 Fringe benefits 80,000 Overhead 60,000 Total $500,000 The...
- B Business Rachel is a sales manager for a large retail chain. She is concerned that several of her product lines may not be selling as well as she d like in certain markets. What...
- B Business Imagine that you have been commissioned by your government to design from scratch an entirely new system for corporate governance. Your system is to be the most effective...
Ответ:
1.$12,000,000
2.31-Dec-2021
Dr Compensation expense$6,000,000
Cr Paid-in-capital-stock options $6,000,000
31-Dec-2022
Dr Compensation expense$6,000,000
Cr Paid-in-capital-stock options $6,000,000
Explanation:
1.)
Total compensation cost of stock options = Estimated fair market value of the option x Number of options granted
=$3 x 4,000,000 shares
=$12,000,000
Therefore total compensation cost of stock options is $12,000,000
2. to 4.) Journal Entries
31-Dec-2021
Dr Compensation expense$6,000,000
Cr Paid-in-capital-stock options $6,000,000
31-Dec-2022
Dr Compensation expense$6,000,000
Cr Paid-in-capital-stock options $6,000,000
Compensation expense
= Total compensation cost of stock options/Vesting period
=$12,000,000/2 years
=$6,000,000