Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need help Im stuck Intermediate Accounting 303: ACCT 303 01 Spring 2018 ACCOUNTING Chapter 19 Hw Question 21 (of 25)> 21. 1.0 points value

I need help Im stuck image text in transcribed
image text in transcribed
Intermediate Accounting 303: ACCT 303 01 Spring 2018 ACCOUNTING Chapter 19 Hw Question 21 (of 25)> 21. 1.0 points value Under its executive stock option plan, National Corporation granted options on January 1. 2016, that permit executives to purchase 20 million of the company's $1 par not before December 31, 2019 (the vesting date). The exercise price is the market price of the shares on common shares within the next seven years, but e date of grant, $23 per sharo. The tair value of the options, estimated by an appropriate oplion pricng model, is $5 per option. No forfeitures are anticipated 1. Ignoring taxes, what is the total compensation cost pertaining to the stock options? (Enter your answer in millions (i.e, 10,000,000 should be entered as 10).) 2. Ignoring taxes, what is the effect on earnings in the year after the options are granted to execulives? Enter your answer in millions(i.e, 10,000,000 should be entered as 10)) esc F6

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting With Ready Notes

Authors: Ronald W. Hilton

1st Edition

0075619733, 978-0075619734

More Books

Students also viewed these Accounting questions

Question

1. Define and explain culture and its impact on your communication

Answered: 1 week ago