Answered step by step
Verified Expert Solution
Question
1 Approved Answer
On January 1 , 2 0 1 9 , Rhine Company adopts a performance - based share option plan for its 8 0 key executives.
On January Rhine Company adopts a performancebased share option plan for its key executives. Each executive is granted a maximum of share options, but the number of options that vest depends on the percentage increase in Rhines sales over a year service period. If by December sales have increased by at least options will vest for each executive; if sales have increased by at least all options will vest. On the grant date, Rhine estimates that its sales will increase by over the service period, and that its employee turnover rate over the year service period will be It also determines that the fair value of an option expected to vest is $ At the end of actual sales had increased by for the service period, and the actual turnover was key executives for the service period.
Required:
Prepare a schedule of Rhines computations for its compensatory share option plan for through
Prepare the compensation expense journal entry for
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