The company established a stock appreciation rights program for the president. The program entitled the president to receive cash for the difference between the common shares fair value and the pre-established price of $20 which was the fair value on January 1, 2021 on 20,000 SARS. The date of the grant was January 1, 2021 and the required employment (service period) is two years. Assume the common shares' fair value fluctuated as follows: December 31, 2021, $24; December 31, 2022, $23 and December 31, 2023, $26. Assume, also, that the president exercised half of the SARS on January 1, 2024. Use ASPE but indicate how IFRS determines the value of Share Appreciation Rights
Q: Required: a. Compute XYZ's cost of goods sold for book purposes and for tax purposes for second year...
A: FIFO method is the method of the inventory in which it is deemed for the purpose of the cost of the ...
Q: Borchardt Corporation has provided the following data concerning last month's operations. Direct mat...
A: Total manufacturing costs = Direct materials + Direct labor + Manufacturing overhead Cost of goods s...
Q: Harris Co. is considering a 12-year project that is estimated to cost $900,000 and has no residual v...
A: In this question, we have to calculate the average annual income we have the formula of Average rat...
Q: The following income statement items appeared on the adjusted trial balance of Schembri Manufacturin...
A: An income statement is a financial report that indicates the revenue and expenses of a business. It ...
Q: On January 1, 2013, BNI Co. sold machinery costing P3,000,000 with accumulated depreciation of P1,20...
A: Lets understand the basics. When asset is purchase with exchange with non interest bearing notes pay...
Q: Scenario: Assume that a relatively new company you and you group members are involved with has prese...
A: SOLUTION A JOURNAL IS AN COMPANY'S OFFICIAL BOOK IN WHICH ALL BUSINESS TRANSACTIONS ARE RECORDED IN ...
Q: Answer this please and also how does the salary for the 12thmonth in number 3 is 96000. Explain also...
A: The partnership comes into existence when two or more persons agree to do the business and further s...
Q: I really struggle with teh FiFO and weighted average stuff Idk where to even start with it Yarm...
A: First In, First Out, generally known as FIFO, is a valuation technique in which assets created or ac...
Q: An annuity-immediate has 3 annual payments of $200, followed by a perpetuity of $300 starting in the...
A: solution given Cash Flow for 4 years Year Cash flow ($) Beginning of year 1 200 Begi...
Q: 13. Selling price per unit ₱25 Number of units sold 15,000 Contribution margin...
A: Selling price = P25 Number of units = P15000 Contribution margin = 30% Net income = P50,000
Q: Neumann-Morgenstern u osing L = 280, 000.
A: Since we answer only the first 3 subparts questions 1-3 will be answered here. Please reupload the q...
Q: An individual is planning to take an 800-mile trip between two large cities. Three possibilities exi...
A: Individual is ready to pay $ 30 per hour saved Air costs = $ 600 , Time = 8 hours Rail costs = $ 450...
Q: A1 The list below shows select accounts for Reading Readiness Company as of B D E F 1 The list below...
A: AN INCOME STATEMENT IS ONE OF THE FINANCIAL STATEMENTS OF A COMPANY THAT SHOWS THE COMPANY'S REVENUE...
Q: Butrico Manufacturing Corporation uses a standard cost system, records materials price variances whe...
A: Answer - Direct Materials Price Variance - Direct material price variance is the difference betwee...
Q: Which of the following types of pension plan will provide benefits that are dependent on the return ...
A: Defined Contribution Plan Defined contribution plan which allows the employees and the employer to i...
Q: Q4- PQR company sells two products. The total fixed expenses of the company are 1,197,000. The month...
A: PQR sells two products , Product A and Product B. The contribution margin is 60% and 70 % , thus the...
Q: . . . . . . . 102,000 115,000 Depreciable Fixed Assets . . . . . . . . . . . . . . . . . . . . . . ...
A: Retained earnings refer to the sum of money remaining at a company after it has distributed the desi...
Q: Sedona Company set the following standard costs for one unit of its product for this year Direct ter...
A: Variable overhead cost variance shows the difference between the standard variable overhead and the ...
Q: The following information pertains to Splash Brothers’ Corporation: Sales margin 25% Capital Tu...
A: Operating Assets: Operating assets are assets that are bought for use in the performance of a firm's...
Q: What amount should be reported as fair value of biological assets at year-end? a. 550,000 b. 450,000...
A: Net Income means the excess of all revenue over expenses and losses. Net income/ net profit earned a...
Q: n of February 2022. d: the Prepaid Rent 3 Fun in February 20: Rent
A: Journal entries refer to the concept of documenting all the transactions of a company in its books.
Q: Forest Components makes aircraft parts. The following transactions occurred in July. Purchased $...
A:
Q: The Tentacool Telecom Supplies makes products Tenta and Cool in a joint process from a single input,...
A: Incremental Revenue per unit = Selling price after further processing - Selling price at the split o...
Q: ! Required information Use the following information to answer questions. (Algo) [The following info...
A: 1. DIRECT LABOR USED : = TOTAL FACTORY PAYROLL - INDIRECT LABOR = $250,000 - $57,500 = $192,500 ...
Q: Kingbird Inc. issued $2,100,000 of convertible 10- year bonds on july 1,2020. The bonds provide for ...
A: In journal transactions are recorded chronologically and information regarded financial transaction ...
Q: Manufacturing Overhead (2) 9,000 (2) 167,000 (3) 15,000 (4) 80,000 (5) 30,000 (6) 25,000 159,000 167...
A: Lets understand the meaning of overapplied and underapplied overhead. When actual overhead is more t...
Q: Carmen Camry operates a consulting firm called Help Today, which began operations on August 1. On Au...
A: Income statement: The income statement shows the company's revenues and expenses earned during the p...
Q: What amount of net gain on biological asset should be reported in the current year?
A: Assets can be either fixed or the non-current asset which depends upon the duration and life of the ...
Q: Help erpreting some of the accounting transactions that took place during the month of January 2022....
A: Transaction on 2/1/2022 Thocc has performed service of $5000, and received cash $3000 and balance to...
Q: SOUND CORE WIRELESS sells a variety of mobile telephone accessories including several brands of Wire...
A: Perpetual inventory system or method for inventory/stock method which records the sale and purchase ...
Q: Richards Corporation uses the weighted-average method of process costing. The following information ...
A: Equivalent units = (Number of physical units × Percentage of completion)
Q: Selected accounts from Phipps Corporation’s trial balance are as follows. Phipps Corporation Trial ...
A: Current assets are those that are expected to be received within 12 months from the end of the repor...
Q: data were made available: lance, February 28, 2020 ected by the bank earned from the note above ck f...
A: Bank Reconcilation statement reconciles the bank balance of the bank with the books The adjusted cas...
Q: QUESTION 2 a) Amirah received a 130-day promissory note at 5% simple interest rate on 10 May 2021. S...
A: A promissory note is referred to as the financial instrument which is exchanged between two parties...
Q: June Co. is evaluating a project requiring a capital expenditure of $620,000. The project has an est...
A: (a) Average rate of return = Average net income/Average investment x 100 = 37,500/310,000...
Q: The computation of total asset requirement is similar with judgmental approach' true or false Net ...
A: The answers for true or false questions and relevant explanation are presented hereunder : What is j...
Q: P6-4. Bebe Co. declared dividends of Php2 per share for their performance last year after the declar...
A: Dividend per share = Php 2 Price per share = Php 45
Q: ce increasing the inc ly using a hypothet. d and clothes and s- alothoo oont $20/it
A: Wallmat uses very different strategies to grow their business. The above mentioned is one of them. B...
Q: Problem 13-9 (IAA) At year-end, a storm surge damaged the warehouse of Braveheart Company. The entir...
A: Cost of goods sold is actual cost of goods that is being sold to the customers. It includes beginnin...
Q: An analysis of WTIT's insurance policies shows that $2,400 of coverage has expired. Note: Enter debi...
A: Insurance coverage expired is the insurance expense of the year and the remaining balance is reporte...
Q: APPLY THE CONCEPTS: Internal rate of return The Sutherland purchasing department has made revisions ...
A: Internal Rate of Return- Internal rate of return refers to the rate at which the net present value o...
Q: SLMA Corp. for the last ten years, has earned and had cash flows of about P600,000 every year. As pe...
A: Solution Given Cash flows every year 600000 Expenses every year 500000 Treasury bond...
Q: Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to Indivduals w...
A: 1. Income Statement 2. Balance Sheet The first statement shows the income earned and loss incurred b...
Q: average method and it reports the following unit data for the Forming department. Units completed in...
A: The equivalent units are calculated on the basis of percentage of the work completed during the peri...
Q: Alfredo Company purchased a new 3-D printer for $877,000. Although this printer is expected to last ...
A: Depreciation is used to denote decrease in value of asset but in accounting term is used to denote d...
Q: Handy Crafts manufactures to customers’ specifications. The company uses a job order cost system and...
A: Computation of the total manufacturing cost and cost of goods manufactured is as follows:
Q: QUESTION 1 RM3,500 was deposited into an account on 12 July 2020. If the simple interest rate was 4....
A: Simple interest is the method which helps in calculating the interest for a principal amount for a p...
Q: P6-1. Compute for the price earnings ratio if the earnings per share is Php5.50: Market Value per sh...
A: P:E Ratio = Market value per share / Earnings per share where, Earnings per share = (Net income - Pr...
Q: The allocation base for overhead is direct labor hours. Data for the year just ended: Estimated tota...
A: The predetermined overhead rate is calculated as estimated overhead cost divided by estimated base a...
Q: ed with a minus sign.) b. C. d. a. 이 $ 이 $ of the year-Equity stments (loss) 이 $ 0 $ rear-Equity %24...
A: Solution Given Assets Liabilities Beginning of the year 119000 51015 End of th...
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- On January 1, 2018 Weins Inc. granted 100,000 stock appreciation rights (SARs) to its executives. (Weins Inc uses IFRS) Each SAR entitled its holder to receive cash equal to the difference between the market price of the common share and the benchmark price of $12. The SARs vested after two years and expired on Dec. 31, 2021. On January 1, 2020, 10,000 SARs are exercised. The market price of the shares remained at $22. On January 1, 2021, 50,000 SARS are exercised. The market price of the shares remained at $15 The remaining SARs expired on December 31, 2021 Pertinent stock-related data are listed below: Date Fair value each SAR Market price of share 1-Jan-18 $11 31-Dec-18 $7 $15 31-Dec-19 $6 $14 31-Dec-20 $8 $22 31-Dec-21 $5 $15 Required: Prepare journal entries for the following: December 31, 2018, to record compensation expense. December 31, 2019, to record compensation expense. December 31, 2020, to record compensation expense.…Ferraro, Inc. established a stock-appreciation rights (SARs) program on January 1, 2020, which entitles executives to receive cash at the date of exercise for the difference between the market price of the stock and the pre-established price of $20 on 5,000 SARs. The required service period is 2 years. The fair value of the SARs are determined to be $4 on December 31, 2020, and $9 on December 31, 2021. Compute Ferraro's compensation expense for 2020 and 2021.On January 1, 2023, Pyxis Company issued share appreciation rights to its president exercisable for one year beginning January 1, 2025 provided that the president is still in the employ of the company at that date of exercise. Each right provides for a cash payment equal to the excess of the entity’s share price over P50. The equivalent number of shares for share appreciation rights will be based on the level of sales at the date of exercise. The number of equivalent shares is 20,000 if the level of sales is P4,000,000 to P6,000,000 and 30,000 shares if the level of sales is over P6,000,000. The actual sales achieved totaled P5,000,000 in 2023 and P7,000,000 in 2024. The share prices are P70 in 2023 and P65 in 2024. What is the compensation expense for 2023? ANSWER: 200,000 What is the compensation expense for 2024? ANSWER: 150,000 Show full solution
- On January 1, 2022, Maris Company issued share appreciation rights to its president exercisable for one year beginning January 1, 2024 provided that the president is still in the employ of the company at that date of exercise. Each right provides for a cash payment equal to the excess of the entity’s share price over P50. The equivalent number of shares for share appreciation rights will be based on the level of sales at the date of exercise. The number of equivalent shares is 20,000 if the level of sales is P4,000,000 to P6,000,000 and 30,000 shares if the level of sales is over P6,000,000. The actual sales achieved totaled P5,000,000 in 2022 and P7,000,000 in 2023. The share prices are P90 in 2022 and P85 in 2023. What amount should be reported as compensation expense for 2023? 250,000 650,000 525,000 850,000An entity granted a share appreciation right to the Business development manager of the company on January 1, 2019. After a three-year service period, the employee is entitled to receive cash equal to the appreciation in share price over the market value or predetermined price on January 1, 2019. The share appreciation right had the following terms: Service period – January 1, 2019 to December 31, 2021; Number of shares – 30,000 shares; Exercise date – January 1, 2022.F urther, the quoted prices of the entity’s share are: January 1, 2019 – 200. December 31, 2019 – 205. December 31, 2020 – 215 and December 31, 2021 – 230. Choose the letter of correct answer As a result of the share appreciation rights, what amount should be recognized as compensation expense for 2019? a.50,000b.75,000c.150,000d.0 what amount should be reported as compensation expense for 2020? a.450,000b.150,000c.100,000d.50,000 If the share appreciation rights are vested upon the officer or exercisable immediately,…An entity granted a share appreciation right to the Business development manager of the company on January 1, 2019. After a three-year service period, the employee is entitled to receive cash equal to the appreciation in share price over the market value or predetermined price on January 1, 2019. The share appreciation right had the following terms:Service period – January 1, 2019 to December 31, 2021;Number of shares – 30,000 shares;Exercise date – January 1, 2022.Further, the quoted prices of the entity’s share are: January 1, 2019 – 200. December 31, 2019 – 205. December 31, 2020 – 215 and December 31, 2021 – 230 Using the same information above, what amount should be reported as compensation expense for 2020? *a.450,000b.150,000c.100,000d.50,000
- On December 31, 2016, Wesley Inc. granted 4,000 share appreciation rights (SARS) to its employees. When exercised, each SAR paid out the current market price of the common shares less $34 (the market price of the common shares on the date of the SAR grant). The vesting period ended on December 30, 2018, and the exercise period ended on December 31, 2019. Infomation on Wesley Inc.'s plan is as follows: Average cash paid out on exercise Estimated Fair value per SAR Number of SARS exercised number of Year end SARS vesting Dec 31, 2016 Dec 31, 2017 Dec 31, 2018 Dec 31, 2019 $ 8 90% | 15 93% 22 92% (actual) $18 2,100 14 1,580 Required: Prepare all journal entries for the years ended December 31, 2017, through December 31, 2019, inclusiveOn December 31, 2016, Wesley Inc. granted 4,000 share appreciation rights (SARs) to its employees. When exercised, each SAR paid out the current market price of the common shares less $34 (the market price of the common shares on the date of the SAR grant). The vesting period ended on December 30, 2018, and the exercise period ended on December 31, 2019. Information on Wesley Inc.'s plan is as follows: Average cash paid out on exercise Number of SARs exercised Year end Dec 31, 2016 Dec 31, 2017 Dec 31, 2018 Dec 31, 2019 Fair value per SAR $ 8 15 22 Estimated number of SARs vesting 90% 93% 92% (actual) $18 14 2,100 1,580 Required: Prepare all journal entries for the years ended December 31, 2017, through December 31, 2019, inclusive.On December 31, 2016, Wesley Inc. granted 4,000 share appreciation rights (SARS) to its employees. When exercised, each SAR paid out the current market price of the common shares less $34 (the market price of the common shares on the date of the SAR grant). The vesting period ended on December 30, 2018, and the exercise period ended on December 31, 2019. Information on Wesley Inc.'s plan is as follows: Average cash paid out on exercise Estimated Fair value per SAR number of SARS vesting Number of Year end SARS exercised $ 8 Dec 31, 2016 Dec 31, 2017 Dec 31, 2018 Dec 31, 2019 90% 15 93% 22 92% (actual) $18 2,100 14 1,580 Required: Prepare all journal entries for the years ended December 31, 2017, through December 31, 2019, inclusive. (
- At the beginning of year 1, an entity grants 200 shares each to 500 employees. The grant is conditional upon the employees remaining in the entity's employ until the performance condition described below is satisfied. Performance Condition The shares will vest at the end of: Year1 - if the entity's earnings increase by 15%. • Year2 - if the entity's earnings increase by more than an average of 11% per year over the two-year period. Year3 - if the entity's earnings increase by more than an average of 8% per year over the three-year period. The shares have a fair value of P15 at the beginning of year 1, which equals the share price at grant date. The entity does not expect to pay dividends over the three-year period. The following events occurred: Year 1 30 employees have left during year 1 and the entity expects, on the basis of a weighted average probability, that a further 40 will leave during year 2. The entity's earnings have increased by 14% by the end of year 1 and the entity…At the beginning of year 1, an entity grants 200 shares each to 500 employees. The grant is conditional upon the employees remaining in the entity's employ until the performance condition described below is satisfied. Performance Condition The shares will vest at the end of: ● Year1 - if the entity's earnings increase by 15%. ● Year2 - if the entity's earnings increase by more than an average of 11% per year over the two-year period. ● Year3 - if the entity's earnings increase by more than an average of 8% per year over the three-year period. The shares have a fair value of P15 at the beginning of year 1, which equals the share price at grant date. The entity does not expect to pay dividends over the three-year period. The following events occurred: Year 1 ● 30 employees have left during year 1 and the entity expects, on the basis of a weighted average probability, that a further 40 will leave during year 2. ● The entity's earnings have increased by 14% by the end of year 1 and the…(Stock-Appreciation Rights) Capulet Company establishes a stock-appreciation rights program that entitles its new president Ben Davis to receive cash for the difference between the market price of the stock and a pre-established price of $30 (also market price) on December 31, 2013, on 30,000 SARs. The date of grant is December 31, 2013, and the requiredemployment (service) period is 4 years. President Davis exercises all of the SARs in 2019. The fair value of the SARs is estimated to be $6 per SAR on December 31, 2014; $9 on December 31, 2015; $15 on December 31, 2016; $6 on December 31, 2017; and $18 on December 31, 2018.Instructions(a) Prepare a 5-year (2014–2018) schedule of compensation expense pertaining to the 30,000 SARs granted president Davis.(b) Prepare the journal entry for compensation expense in 2014, 2017, and 2018 relative to the 30,000 SARs.