

On January 1, 2018, Pronghorn Property Management Inc. introduced a stock-based compensation plan for its senior...
On January 1, 2018, Pronghorn Property
Management Inc. introduced a stock-based compensation plan for its
senior executives. The company has a December 31, 2018 year-end and
the following events occurred: ● January 1, 2018 – The company
issued 324,000 options to senior management executives for the
purchase of shares at $11 / share. The fair value of the options
using an options pricing model is $2,268,000. Options vest over a
three-year period and it is estimated that 90% of the...
On January 1, 2018, Wildhorse Property Management Inc. introduced a stock-based compensation plan for its senior executives. The company has a December 31, 2018 year-end and the following events occurred: ● January 1, 2018 – The company issued 339,000 options to senior management executives for the purchase of shares at $9 / share. The fair value of the options using an options pricing model is $2,034,000. Options vest over a three-year period and it is estimated that 90% of the...
As part of its stock-based compensation package, on January 1, 2018. Weldon Well Supplies granted restricted stock units (RSUS) representing 100,000 $1 par common shares. At exercise, holders of the RSUS are entitled to receive cash or stock equal in value to the market price of those shares at exercise. The RSUS cannot be exercised until the end of 2021 (vesting date) and expire at the end of 2023. The $1 par common shares have a market price of $6.6...
As part of its stock-based compensation package, on January 1, 2018, Weldon Well Supplies granted restricted stock units (RSUs) representing 100,000 $1 par common shares. At exercise, holders of the RSUs are entitled to receive cash or stock equal in value to the market price of those shares at exercise. The RSUs cannot be exercised until the end of 2021 (vesting date) and expire at the end of 2023. The $1 par common shares have a market price of $6.9...
As part of its stock-based compensation package, on January 1, 2018, Weldon Well Supplies granted restricted stock units (RSUs) representing 100,000 $1 par common shares. At exercise, holders of the RSUs are entitled to receive cash or stock equal in value to the market price of those shares at exercise. The RSUs cannot be exercised until the end of 2021 (vesting date) and expire at the end of 2023. The $1 par common shares have a market price of $6.5...
On January 1, 2020, Pronghorn Corporation granted 4,600 options
to executives. Each option entitles the holder to purchase one
share of Pronghorn’s $5 par value common stock at $50 per share at
any time during the next 5 years. The market price of the stock is
$69 per share on the date of grant. The fair value of the options
at the grant date is $161,000. The period of benefit is 2
years.
Prepare Pronghorn’s journal entries for January 1,...
Rambling Man, Inc. has a stock-option plan for top management. Each stock option represents the right to purchase a share of Rambling Man $1 par value common stock in the future at a price equal to the fair value of the stock at he date of the grant. On January 1, 2018, Rambling Man issued the following options: Number of options granted 55,000 Market price of stock at grant date 42 Fair value of options at grant date...
As part of its stock-based compensation package, International
Electronics granted 24 million stock appreciation rights (SARs) to
top officers on January 1, 2018. At exercise, holders of the SARs
are entitled to receive cash or stock equal in value to the excess
of the market price at exercise over the share price at the date of
grant. The SARs cannot be exercised until the end of 2021 (vesting
date) and expire at the end of 2023. The $1 par common...
Walters Audio Visual Inc. offers an incentive stock option plan to its regional managers. On January 1, 2018, options were granted for 28 million $1 par common shares. The exercise price is the market price on the grant date-$8 per share. Options cannot be exercised prior to January 1, 2020, and expire December 31, 2024. The fair value of the 28 million options, estimated by an appropriate option pricing model, is $1 per option Required: 1. Determine the total compensation...
Under its executive stock option plan, National Corporation granted 30 million options on January 1, 2018, 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, 2020 (the vesting date). The exercise price is the market price of the shares on the date of grant. $27 per share. The fair value of the options, estimated by an appropriate option pricing model, is $4 per option. Suppose...