On January 1, 2022, Western Wear, Inc. granted 100,000 stock options to its employees. Of these options,

Question:

On January 1, 2022, Western Wear, Inc. granted 100,000 stock options to its employees. Of these options, 30% will vest on December 31, 2022, 30% will vest on December 31, 2023, and the remaining 40% will vest on December 31, 2024. The fair value of the options was $15.34 per share using a weighted-average expected life. The fair value of the 30,000 options that vest in 2022 is $14.67 per option. The fair value of the 30,000 options that vest in 2023 is $15.38 per option and the fair value of the remaining options is $16.30 per option in 2024. Western records stock-based compensation by adjusting for estimated forfeitures. However, Western does not expect any forfeitures for these options. Prepare a memo to the file addressing Western Wear’s compensation expense for 2022 through 2024. Use the Codification for support.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Answer rating: 66% (9 reviews)

MEMORANDUM TO THE FILE TO Client File Western Wear Inc FROM Student Name DATE Assignment Date RE Accounting for Employee Stock Options with Graded Ves...View the full answer

Answered By

Mary Boke

As an online tutor with over seven years of experience and a PhD in Education, I have had the opportunity to work with a wide range of students from diverse backgrounds. My experience in education has allowed me to develop a deep understanding of how students learn and the various approaches that can be used to facilitate their learning. I believe in creating a positive and inclusive learning environment that encourages students to ask questions and engage with the material. I work closely with my students to understand their individual learning styles, strengths, and challenges to tailor my approach accordingly. I also place a strong emphasis on building strong relationships with my students, which fosters trust and creates a supportive learning environment. Overall, my goal as an online tutor is to help students achieve their academic goals and develop a lifelong love of learning. I believe that education is a transformative experience that has the power to change lives, and I am committed to helping my students realize their full potential.

5.00+ 4+ Reviews 21+ Question Solved

Related Book For book-img-for-question

Intermediate Accounting

ISBN: 9780136946694

3rd Edition

Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella

See More Books

Question Posted: Jun 25, 2023 05:26 AM

See More Questions

On January 1, 2022, Western Wear, Inc. granted 100,000 stock options to its employees. Of these options,

Question:

Step by Step Answer:

MEMORANDUM TO THE FILE TO Client File Western Wear Inc FROM Student Name DATE Assignment Date RE Accounting for Employee Stock Options with Graded Ves...View the full answer

Intermediate Accounting

Students also viewed these Business questions