what is the effect on earnings in 2022?
Q: Margin $ $400,000 Total Costs $ $ Separable Costs $280,000 $520,000 $800,000 Joint Cost? What amount…
A: The Constant Gross-Margin Percentage NRV Method is an method for determining price of the products…
Q: QUESTION 57 Historical cost principle does not apply to long term assets (PPE) held for disposal,…
A: Historical cost is the principle of accounting which says that long term assets should be carried at…
Q: prepare the balance sheet and p& l for 2022
A: RevenueRevenue ItemAmount (in INR)Gross margin on sale of sugar canes36,73,08,000Dividends received…
Q: what is the ending balance in the equity investment account for both years? this solution only…
A: Beginning Equity Investment: $2,400,000Orange's share of Blue's net income: 20% * $600,000 =…
Q: 57. Under the New York General Business Law, which of the following is NOT an implied warranty in…
A: Under the New York General Business Law, the implied warranties for new housing are governed by…
Q: Andrew and Brianna are married and live in Texas, a community property state. For their birthdays…
A: As per the current United States federal tax rates. Current year gift exclusions limit for 2018…
Q: 3. How much is the TOTAL SHAREHOLDERS' EQUITY? *
A: Stockholders' equity refers to the amount of assets that belong to the owners after paying for all…
Q: Cost of Goods Manufactured Refer to Brief Exercise 2-1. For next year, Bob’s Bistro predicts that…
A: The objective of the question is to prepare a statement of cost of goods manufactured for Bob's…
Q: Compute breakeven sales: revenue $650,000 $50 Variable expenses 227,500 17.50 Contribution margin…
A: Break even point:— It is the point of production where total cost is equal to total revenue. At this…
Q: Computing consolidated earnings per share (EPS) Assume the following facts about a parent and its…
A: Basic Earnings per Share = Earnings available to common shares ÷ Number of common shares outstanding…
Q: A business issued a 60-day, 4% note for $21,600 to a creditor on account. The company uses a 360-day…
A: "Note Payable" is a financial instrument commonly used in the fields of accounting and finance. It…
Q: RC Company produces a product that undergoes three processes and the completed items at end of…
A: Costing systems is categorized as job order costing system and process costing. Under job order…
Q: Agawa City presents the following pre-closing trial balance for its General Fund as of the end of…
A: The objective of this question is to calculate the amount of fund balance at the end of the fiscal…
Q: s part of its stock-based compensation package, International Electronics granted 61 million stock…
A: The stock appreciation rights provide the right to the employees under which they are paid…
Q: For questions #33-40, refer to the following financial information for Disney (DIS). Use Excel…
A: "Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: Additional Data: Average shareholders' equity Average number of shares outstanding Dividends paid O…
A: The ratio analysis helps to analyze the Financial statements of the business on the basis of…
Q: Sarasota Inc. has provided you with the following information. This company purchases its inventory…
A: The journal entries are prepared to record the transactions on regular basis. The cost of goods sold…
Q: Lamonda Corporation uses a job order cost system. On April 1, the accounts had balances as shown in…
A: The costing system is categorized into job order costing and process costing. Job order costing…
Q: Green Foods currently has $550,000 of equity and is planning an $220,000 expansion to meet…
A: Capital structure refers to the mix of a company's debt and equity financing used to fund its…
Q: a. What is the purchase price of the bond? b. What is the accrued interest? c. What was the quoted…
A: To discover the purchase rate of the bond, we are able to use the formula for the prevailing value…
Q: Q3. In a manufacturing process the following standards apply: Standard Price: Raw material A Rs. 10…
A: Answer:Material price variance= Actual cost- Standard cost = 1000 ( F) Material Price Variance=…
Q: b) c) Record the first two insta 6. 7 Marks On Nov 1, 2023 Hamilton Inc asks that a $200,000…
A: The objective of the question is to record the journal entries for the conversion of an account…
Q: 2. Double-declining balance. Note: Round your answers to the nearest whole dollar amount. Year 2024…
A: Depreciation -A progressive decline in the book value of fixed assets that occurs over time is…
Q: Each taxpayer is covered by an employer retirement plan in 2022. Choosing from the listed scenarios,…
A: Deductions are defined as those payments made by a taxpayer during a specific period that can be…
Q: munabhai
A: The objective of the question is to prepare journal entries for the transactions involving…
Q: Waterway Inc. has decided to purchase equipment from Central Michigan Industries on January 2, 2020,…
A: “Since you have posted a question with multiple sub parts, we will provide the solution only to the…
Q: Which assertion is most likely being tested when an auditor vouches transactions from the sales…
A: In auditing and financial reporting, an assertion refers to a representation or statement made by…
Q: Ms. Beal recognized a $42,400 net long-term capital gain and a $33,000 net short-term capital loss…
A: Income tax is based on income. Suppose a person has salary income, capital gain income, house rent…
Q: Widmer Company had gross wages of $296,000 during the week ended June 17. The amount of wages…
A: Payroll costs are business costs of salaries and wages being paid to employees. Until payroll…
Q: Jane doe and lisa maria entered into a qualified exchange of like-kind property. 1. what is the…
A: The objective of this question is to calculate the gain realized by Jane on the exchange of…
Q: Doll Computer manufactures laptop computers under its own brand, but acquires all the components…
A: The term "traditional cost accounting" describes how expenses are traditionally allocated to goods…
Q: RHCC Manufacturing Company manufactures one product that has several model styles. All materials are…
A: Job costing is a method of costing where in all the costs like direct materials, direct labor and…
Q: Determine the amount to be added to Allowance for Doubtful Accounts in each of the following cases…
A: The objective of the question is to calculate the amount to be added to the Allowance for Doubtful…
Q: At year-end December 31, Chan Company estimates its bad debts as 0.70% of its annual credit sales of…
A: The accounting equation states that assets are equal to the sum of the liabilities and equity. The…
Q: Capital and revenue expenditures Quality Move Company made the following expenditures on one of its…
A: Journal Entry :— It is an act of recording transactions in books of account when transaction…
Q: Fortune Brands granted options on January 1, 2024, that allows the recipient to purchase 15.0…
A: Stock option refers to an employee benefit program under which the employees are offered to buy the…
Q: American Laser, Inc., reported the following account balances on January 1. Accounts Receivable…
A: The objective of the question is to prepare the journal entries for the transactions of American…
Q: On December 31, 2021, the statement of financial position of FRUITS Company showed the following…
A: Shareholders equity includes both ordinary shares and preference shares, retained earnings, excess…
Q: The following event is referred to as the post-balance sheet event: O A. OB. O C. O D. Any event…
A: An event or transaction that takes place after the financial statements balance sheet date but…
Q: Prepare journal entries for the month of May's transactions.
A: NoDateGeneral JournalDebitCreditWorking:1May-31Raw materials inventory$25,000Accounts…
Q: The income statement and a schedule reconciling cash flows from operating activities to net income…
A: Cash flow from operating activities indicates the cash inflow or outflow transactions related to the…
Q: comparative balance sheets of Atlas, Incorporated show a net increase in inventory of $87,000 and a…
A: Cash Flow Statement -A financial statement that illustrates how money enters and exits a business…
Q: Cash Accounts receivable Prepaid rent Prepaid Insurance Office supplies Office equipment Accumulated…
A: The objective of the question is to determine the amounts of current assets and current liabilities…
Q: Yash and Ankita decided to invest money in this joint venture, which they called Alkaline. Both of…
A: Journal is the the book of primary entry that is used for recording day-to-day transactions in the…
Q: On August 30, JumpStart incurred the following expenses: Payment to the landlord for August rent,…
A: Journal Entry :— It is an act of recording transactions in books of account when transaction…
Q: Which of the following costs could contain both variable and fixed cost elements with respect to the…
A: Variable cost means cost which changes with the change in activity whereas the Variable cost per…
Q: American Food Services, Incorporated, acquired a packaging machine from Barton and Barton…
A: A lease is a contract in which a landlord (the lessor) offers the tenant (the lessee) the right to…
Q: Answer the following compounding/discounting questions assuming year-end cash flows. St. Elsewhere…
A: For the purpose of ccalculating the annual payment, this formula can be used:P = P0 * r * (1+r)n /…
Q: Required: 1. Prepare an analysis showing what impact dropping flight 482 would have on the airline's…
A:
Q: The SGS Co. had $285,342 in taxable income. Using the rates from the table below, calculate the…
A: The taxable income refers to the income computed after applying all the applicable deductions and…
Under its executive stock option plan, Boston Corporation granted options on January 1, 2021, that permit executives to purchase 15 million of the company's $1 par common shares within the next eight years, but not before December 31, 2023 (the vesting date). The exercise price is the market price of the shares on the date of grant, $18 per share. The fair value of the options, estimated by an appropriate option pricing model, is $4 per option. No forfeitures were anticipated; however, unexpected turnover during 2022 caused the forfeiture of 5% of the stock options. Ignoring taxes, what is the effect on earnings in 2022?
Multiple Choice
-$18.5 million.
-$18 million.
-$19 million.
-$20 million.
Step by step
Solved in 4 steps with 4 images
- Under its executive stock option plan, Western Corporation granted options on January 1, 2021, that permit executives to purchase 26 million of the company's $1 par common shares within the next eight years, but not before December 31, 2023 (the vesting date). The exercise price is the market price of the shares on the date of grant, $20 per share. The fair value of the options, estimated by an appropriate option pricing model, is $6 per option. No forfeitures are anticipated. The options are exercised on April 2, 2024, when the market price is $23 per share. By what amount will Western's shareholder's equity be increased when the options are exercised?Under its executive stock option plan, Sorensen Corporation granted options on January 1, 2024, that permit executives to purchase 31 million of the company's $1 par common shares within the next seven years, but not before December 31, 2026 (the vesting date). The exercise price is the market price of the shares on the date of grant, $19 per share. The fair value of the options, estimated by an appropriate option pricing model, is $4 per option. No forfeitures are anticipated. The options expired in 2030 without being exercised. By what amount will Sorensen's shareholders' equity be increased as a result of having granted the options?Under its executive stock option plan, Mining Co. granted options on January 1, 2021, that permit executives to purchase 15 million of the company's $1 par common shares within the next eight years, but not before December 31, 2023 (the vesting date). The exercise price is the market price of the shares on the date of grant, $22 per share. The fair value of the options, estimated by an appropriate option pricing model, is $4 per option. No forfeitures are anticipated. The options are exercised on April 2, 2024, when the market price is $21 per share. By what amount will the shareholders' equity increase when 100% of those options are exercised? O $60 million $270 million O $315 million. O $330 million
- Under its executive stock option plan, ABC Corp. granted 30 million options on January 1, 2021, that permit executives to purchase 30 million of the company's $1 par common shares within the next six years, but not before December 31, 2023. • The exercise price is the market price of the shares on the date of grant, $30 per share. • The fair value of the options as of grant date, estimated by an appropriate option pricing model, is $2 per option. • Assume no forfeitures. Required: 1. Provide the journal entry for compensation expense on December 31, 2021. 2. Provide the journal entry for compensation expense on December 31, 2022. 3. Provide the journal entry for compensation expense on December 31, 2023. 4. Suppose that all 30 million options are exercised on April 3, 2024, when the market price is $35 per share. Provide the journal entry for exercise of the options. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter…Under its executive stock option plan, National Corporation granted 30 million options on January 1, 2021, that permit executives to purchase 30 million of the company’s $1 par common shares within the next six years, but not before December 31, 2023 (the vesting date). The exercise price is the market price of the shares on the date of grant, $30 per share. The fair value of the options, estimated by an appropriate option pricing model, is $2 per option. Suppose that unexpected turnover during 2022 caused the forfeiture of 5% of the stock options. Compute the amount of compensation expense for 2022 and 2023.Under its executive stock option plan, National Corporation granted 30 million options on January 1, 2021, that permit executives to purchase 30 million of the company’s $1 par common shares within the next six years, but not before December 31, 2023 (the vesting date). The exercise price is the market price of the shares on the date of grant, $31 per share. The fair value of the options, estimated by an appropriate option pricing model, is $4 per option. Suppose that the options are exercised on April 3, 2024, when the market price is $38 per share. Ignoring taxes, what journal entry will National record? Record entry for options exercised on April 3, 2024, when the market price is $38 per share.
- Under its executive stock option plan, National Corporation granted 29 million options on January 1, 2021, that permit executives to purchase 29 million of the company’s $1 par common shares within the next eight years, but not before December 31, 2023 (the vesting date). The exercise price is the market price of the shares on the date of grant, $33 per share. The fair value of the options, estimated by an appropriate option pricing model, is $5 per option. Suppose that the options expire without being exercised. Ignoring taxes, what journal entry will National record? Record entry for the options that expired without being exercised.Under its executive stock option plan, National Corporation granted 21 million options on January 1, 2021, that permit executives to purchase 21 million of the company’s $1 par common shares within the next six years, but not before December 31, 2023 (the vesting date). The exercise price is the market price of the shares on the date of grant, $26 per share. The fair value of the options, estimated by an appropriate option pricing model, is $4 per option. Suppose that unexpected turnover during 2022 caused the forfeiture of 5% of the stock options. Compute the amount of compensation expense for 2022 and 2023. (Enter your answers in millions rounded to 2 de Answer is not complete. Compensation expense ($ in millions) 2022 2023 cimal places (i.e., 5,500,000 should be entered as 5.50))Under its executive stock option plan, National Corporation granted 10 million options on January 1, 2021, that permit executives to purchase 10 million of the company’s $1 par common shares within the next six years, but not before December 31, 2023 (the vesting date). The exercise price is the market price of the shares on the date of grant, $14 per share. The fair value of the options, estimated by an appropriate option pricing model, is $3 per option. No forfeitures are anticipated. 1. Ignoring taxes, what is the total compensation cost pertaining to the stock options?2. Ignoring taxes, what is the effect on earnings in the year after the options are granted to executives?
- Under its executive stock option plan, National Corporation granted 12 million options on January 1, 2021, that permit executives to purchase 12 million of the company’s $1 par common shares within the next six years, but not before December 31, 2023 (the vesting date). The exercise price is the market price of the shares on the date of grant, $17 per share. The fair value of the options, estimated by an appropriate option pricing model, is $5 per option. No forfeitures are anticipated. Ignoring taxes, what is the total compensation cost pertaining to the stock options? What is the effect on earnings in the year after the options are granted to executives?On January 1, 2021, EG Corporation granted 30 million options under its executive stock option plan that permit executives to purchase 30 million of the company’s $1 par common shares within the next eight years, but not before December 31, 2025 (the vesting date). The exercise price is the market price of the shares on the date of grant, $30 per share. The fair value of the options, estimated by an appropriate option pricing model, is $2 per option. No forfeitures are anticipated. 1. Ignoring taxes, what is the total compensation cost EG Corporation will recognize as a result of the stock options?2. Ignoring taxes, what is the effect on EG's earnings in the year after the options are granted to executives?On January 1, 2021, EG Corporation granted 22 million options under its executive stock option plan that permit executives to purchase 22 million of the company’s $1 par common shares within the next seven years, but not before December 31, 2024 (the vesting date). The exercise price is the market price of the shares on the date of grant, $26 per share. The fair value of the options, estimated by an appropriate option pricing model, is $4 per option. No forfeitures are anticipated. 1. Ignoring taxes, what is the total compensation cost EG Corporation will recognize as a result of the stock options?2. Ignoring taxes, what is the effect on EG's earnings in the year after the options are granted to executives? total compensation effect on earnings decrease increase no effect