Return to question On January 1, 2021, Farmer Fabrication issued stock options for 300,000 shares to a division manager. The options have an estimated fair value of $7 each. To provide additional incentive for managerial achievement, the options are not exercisable unless divisional revenue increases by 3% in three years. Suppose that Farmer initially estimates that it is not probable the goal will be achieved, but then after one year, Farmer estimates that it is probable that divisional revenue will increase by 3% by the end of 2023. Required: 1. What is the revised estimate of the total compensation? 2. What action will be taken to account for the options in 2022? 3. Prepare the journal entries to record compensation expense in 2022 and 2023. Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 What is the revised estimate of the total compensation and what action will be taken to account for the options in 2022? lted so far. It does not indicate completion. Return to question 1. What is the revised estimate of the total compensation! 2. What action will be taken to account for the options in 2022? 3. Prepare the journal entries to record compensation expense in 2022 and 2023. Answer is not complete Complete this question by entering your answers in the tabs below. Req3 Req 1 and 2 What is the revised estimate of the total compensation and what action will be taken to account for the options in 2022? 1. 2 Estimate total compensation What action will be taken to account for the options in 20227 700.000 Farmer will reflect the cumulative effect on compensation in 2022 earnings Reg 3 > 9 Req 1 and 2 Reg 3 34 Dints Prepare the journal entries to record compensation expense in 2022 and 2023. (If no entry is required for a transactic journal entry required" in the first account field. Do not round intermediate calculations. Round your final answers to t dollar.) eBook View transaction list References Journal entry worksheet Hill Req 1 and 2 Reg 3 Prepare the journal entries to record compensation expense in 2022 and 2023. (If no entry is required for a tram journal entry required" in the first account field. Do not round intermediate calculations. Round your final answer dollar.) Book View transaction list rences Journal entry worksheet 1 2 Record compensation expense. Note: Enter debits before credits General Journal Debit Credit Date 2023 Return to question On January 1, 2021, Farmer Fabrication issued stock options for 300,000 shares to a division manager. The options have an estimated fair value of $7 each. To provide additional incentive for managerial achievement, the options are not exercisable unless divisional revenue increases by 3% in three years. Suppose that Farmer initially estimates that it is not probable the goal will be achieved, but then after one year, Farmer estimates that it is probable that divisional revenue will increase by 3% by the end of 2023. Required: 1. What is the revised estimate of the total compensation? 2. What action will be taken to account for the options in 2022? 3. Prepare the journal entries to record compensation expense in 2022 and 2023. Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 What is the revised estimate of the total compensation and what action will be taken to account for the options in 2022? lted so far. It does not indicate completion. Return to question 1. What is the revised estimate of the total compensation! 2. What action will be taken to account for the options in 2022? 3. Prepare the journal entries to record compensation expense in 2022 and 2023. Answer is not complete Complete this question by entering your answers in the tabs below. Req3 Req 1 and 2 What is the revised estimate of the total compensation and what action will be taken to account for the options in 2022? 1. 2 Estimate total compensation What action will be taken to account for the options in 20227 700.000 Farmer will reflect the cumulative effect on compensation in 2022 earnings Reg 3 > 9 Req 1 and 2 Reg 3 34 Dints Prepare the journal entries to record compensation expense in 2022 and 2023. (If no entry is required for a transactic journal entry required" in the first account field. Do not round intermediate calculations. Round your final answers to t dollar.) eBook View transaction list References Journal entry worksheet Hill Req 1 and 2 Reg 3 Prepare the journal entries to record compensation expense in 2022 and 2023. (If no entry is required for a tram journal entry required" in the first account field. Do not round intermediate calculations. Round your final answer dollar.) Book View transaction list rences Journal entry worksheet 1 2 Record compensation expense. Note: Enter debits before credits General Journal Debit Credit Date 2023
