Question
Assume that NESS Company issues 10,000 restricted stock units to its CEO on January 1, 20X0. The no-par common stock has a fair value of
Assume that NESS Company issues 10,000 restricted stock units to its CEO on January 1, 20X0. The no-par common stock has a fair value of $200,000 on this date. The service period related to this restricted stock is 4 years. Vesting occurs only if the CEO stays with the company for the full 4-year period ending December 31, 20X3.
1- What is the total amount of compensation expense recorded over the 4-year period related to the RSUs if the fair value of the stock is $250,000 on December 31, 20X3?
2- What would be compensation expenses be for 20X1 related to Hoho's ESPP?
Step by Step Solution
3.42 Rating (165 Votes )
There are 3 Steps involved in it
Step: 1
A C D F 1 2 Total amount of compensation expense 1 3 recorde...
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Cost Accounting A Managerial Emphasis
Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav
13th Edition
8120335643, 136126634, 978-0136126638
