Business, 07.06.2020 03:01 faithrawlins14

SSG Cycles manufactures and distributes motorcycle parts and supplies. Employees are offered a variety of share-based compensation plans. Under its nonqualified stock option plan, SSG granted options to key officers on January 1, 2018. The options permit holders to acquire 24 million of the company’s $1 par common shares for $11 within the next six years, but not before January 1, 2021 (the vesting date). The market price of the shares on the date of grant is $13 per share. The fair value of the 24 million options, estimated by an appropriate option pricing model, is $3.3 per option. Required:
a. Determine the total compensation cost pertaining to the incentive stock option plan.
b. Prepare the appropriate journal entries to record compensation expense on December 31, 2018, 2019, and 2020.
c. Record the exercise of the options if all of the options are exercised on May 11, 2022, when the market price is $14 per share.

Answers: 3

Show answers

Another question on Business

Business, 21.06.2019 20:00

The maximum tax rate on estates and gifts

Answers: 1

Answer

Business, 22.06.2019 02:20

Each month, business today publishes a news piece about an innovative product, service, or business. such soft news is generally written by a freelance business writer and is known as a

Answers: 2

Answer

Business, 22.06.2019 08:30

Match the given situations to the type of risks that a business may face while taking credit. 1. beta ltd. had taken a loan from a bank for a period of 15 years, but its sales are gradually showing a decline. 2. alpha ltd. has taken a loan for increasing its production and sales, but it has not conducted any research before making this decision. 3. delphi ltd. has an overseas client. the economy of the client’s country is going through severe recession. 4. delphi ltd. has taken a short-term loan from the bank, but its supply chain logistics are not in place. a. foreign exchange risk b. operational risk c. term of loan risk d. revenue projections risk

Answers: 3

Answer

Business, 22.06.2019 08:40

Which of the following is not a characteristic of enterprise applications that cause challenges in implementation? a. they introduce "switching costs," making the firm dependent on the vendor. b. they cause integration difficulties as every vendor uses different data and processes. c. they are complex and time consuming to implement. d. they support "best practices" for each business process and function. e. they require sweeping changes to business processes to work with the software.

Answers: 1

Answer

You know the right answer?

SSG Cycles manufactures and distributes motorcycle parts and supplies. Employees are offered a varie...

Questions