Stock Based Compensation
Answer:
1:
|
Total net income $ in million |
rate |
forfeited amount $ in million |
forfeited expenses | |
|
2014 Restricted Stock |
10% | |||
|
25 |
25% |
6.25 | ||
|
26 |
25% |
6.5 | ||
|
27 |
25% |
6.75 | ||
|
28 |
25% |
7 | ||
|
Total |
26.5 | |||
|
Forfeited Expense |
$ 2.65 million |
The company forfeited 25% every quarter. The forfeited expense rate is 10% per year. So it is calculated 25% of the total amount is forfeited amount and 10% of the forfeited amount is forfeited expense.
2:
|
item |
Compensation |
rate |
Net Compensation |
|
Options |
75000 |
20% |
60000 |
|
2014 Restricted Stock |
84000 |
10% |
75600 |
|
2015 Restricted Stock |
166000 |
20% |
132800 |
The number of restricted share in 2014 is 84000 and in 2015 are 166000. The forfeited expense rate is 10% and 20% respectively. The total compensation is the difference between total numbers of share forfeited expenses rate.
3:
|
2014 |
price per share |
amount in million $ | |
|
Number of option stock |
75000 |
12 |
900000 |
|
number of restricted share |
84000 |
12 |
1008000 |
|
Total |
1.908 | ||
|
Actual forfeited amount in 2014 |
2.65 | ||
|
Difference |
0.742 |
4:
Journal entry
|
$ amount | ||
|
total number of share |
500000 | |
|
forfeited share |
125000 | |
|
face value |
1 | |
|
application money |
0.25 | |
|
allotment money |
0.25 | |
|
first call money |
0.25 | |
|
final call money |
0.25 | |
|
journal entry | ||
|
Dr. |
Cr. | |
|
share capital A/C Dr. |
125000 | |
|
To share allotment A/c |
31250 | |
|
share first call A/C |
31250 | |
|
share final call A/C |
31250 | |
|
Forfeited A/C |
31250 | |
|
share capital A/C Dr. |
125000 | |
|
To share first call A/C |
31250 | |
|
share final call A/C |
31250 | |
|
Forfeited A/C |
62500 | |
|
share capital A/C Dr. |
125000 | |
|
To share final call A/C |
31250 | |
|
Forfeited share A/C |
93750 | |
|
share capital A/C Dr. |
125000 | |
|
To Forfeited A/C |
125000 |
5:
|
item |
Compensation |
rate |
Net Compensation |
Expense |
Expected |
Remaining |
|
Options |
75,000 |
20% |
60,000 |
25,000 |
35,000 |
19 |
|
2014 Restricted Stock |
84,000 |
10% |
75,600 |
50,000 |
25,600 |
12 |
|
2015 Restricted Stock |
1,66,000 |
20% |
1,32,800 |
80,000 |
52,800 |
7 |
|
Monthly |
Janurary15 |
Feburary15 |
March15 |
April -15 |
May-15 |
June-15 |
July-15 |
|
1,842 |
1,842 |
1,842 |
1,842 |
1,842 |
1,842 |
1,842 |
1,842 |
|
2,133 |
2,133 |
2,133 |
2,133 |
2,133 |
2,133 | ||
|
7,543 |
7,543 |
7,543 |
7,543 |
7,543 |
7,543 |
7,543 |
7,543 |
|
Total |
11,518 |
11,518 |
11,518 |
11,518 |
11,518 |
9,385 |
9,385 |
|
Total x months until vesting |
11,518 |
23,037 |
34,555 |
46,073 |
57,591 |
56,310 |
65,695 |
|
Auguest-15 |
September-15 |
October-15 |
November-15 |
December-15 |
|
1,842 |
1,842 |
1,842 |
1,842 |
1,842 |
|
1,842 |
1,842 |
1,842 |
1,842 |
1,842 |
|
14,737 |
16,579 |
18,421 |
20,263 |
22,105 |
|
Total of row 12 |
3,86,884 | |
|
Total Expected to be recognized |
1,13,400 | |
|
Weighted-average period |
3.41 |
Years |
Reference List
Kieso, D., Weygandt, J. and Warfield, T. (2012). Intermediate accounting. Hoboken, NJ: Wiley.
Libby, R., Libby, P. and Short, D. (2011). Financial accounting. New York: McGraw-Hill/Irwin.
Media, B. (2013). CFA Navigator - Level 2 Question Bank. London: BPP Learning Media.
North, C. and Caes, C. (2012). The stock market. New York, NY: Rosen Pub
Buy Stock Based Compensation Answers Online
Talk to our expert to get the help with Stock Based Compensation Answers to complete your assessment on time and boost your grades now
The main aim/motive of the management assignment help services is to get connect with a greater number of students, and effectively help, and support them in getting completing their assignments the students also get find this a wonderful opportunity where they could effectively learn more about their topics, as the experts also have the best team members with them in which all the members effectively support each other to get complete their diploma assignments. They complete the assessments of the students in an appropriate manner and deliver them back to the students before the due date of the assignment so that the students could timely submit this, and can score higher marks. The experts of the assignment help services at urgenthomework.com are so much skilled, capable, talented, and experienced in their field of programming homework help writing assignments, so, for this, they can effectively write the best economics assignment help services.
