Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

it would be great if you could show your work on excel if not its okay. Accounting for a Performance-Based Stock Option Plan Rhiener Corporation

it would be great if you could show your work on excel if not its okay. image text in transcribed
Accounting for a Performance-Based Stock Option Plan Rhiener Corporation initiated a performance-based employee stock option plan on Jan performance base for the plan is net sales in the year 2016. The plan provides for stor awarded to the employees as a group on the following basis: an on January 1, 2014. The es for stock options to be Options Granted Level 10,000 Net Sales Range $1,000,000 20,000 30,000 40,000 The options become exercisable on January 1, 2017. The option exercise price is $20 per shi January 1, 2014, each option had a fair value of $9. The market prices of Rhiener stock on selected in 2014-2016 were as follows: January 1, 2014 ................................. .. $25 December 31, 2014 ............................................................. 30 December 31, 2015.................................................................... December 31, 2016 ........ Year 2016 sales estimates as of selected dates were as follows: January 1, 2014 .. December 31, 2014........................................ $400.000 December 31, 2015.... 450.000 550.000 Actual sales for 2016 were $700,000. Calculate the compensation expense Rhiener should report to years 2014, 2015, and 2016 related to this performance-based stock option plan C

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

Step: 3

blur-text-image

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

Handbook Of Alternative Assets

Authors: Mark J. P. Anson

2nd Edition

047198020X, 978-0471980209

More Books

Students also viewed these Finance questions