Question
Illustration 7 On April 1, 2017, a company offered 100 shares to each of its 500 employees at 40 per share. The employees are given
Illustration 7
On April 1, 2017, a company offered 100 shares to each of its 500 employees at 40 per share. The employees are given a month to decide whether or not to accept the offer. The shares issued under the plan shall be subject to lock-in on transfers for three years from grant date. The market price of shares of the company on the grant date is 50 per share. Due to post-vesting restrictions on transfer, the fair value of shares issued under the plan is estimated at 48 per share.
On April 30, 2017, 400 employees accepted the offer and paid 40 per share purchased. Nominal value of each share is $ 10.
Record the issue of shares in book of the company under the aforesaid plan.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
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