Problemon october 15 2012 the board of directors of ensor, Ask an Expert

Accounting

Problem

On October 15, 2012, the board of directors of Ensor Materials Corporation approved a stock option plan for key executives. On January 1, 2013, 32 million stock options were granted, exercisable for 32 million shares of Ensor's $1 par common stock. The options are exercisable between January 1, 2016, and December 31, 2018, at 90% of the quoted market price on January 1, 2013, which was $20. The fair value of the 32 million options, estimated by an appropriate option pricing model, is $3 per option.

3.2 million options were forfeited when an executive resigned in 2014. All other options were exercised on July 12, 2017, when the stock's price jumped unexpectedly to $31 per share.

1. When is Ensor's stock option measurement date?

January 1, 2016

January 1, 2013

October 15, 2012

December 31, 2018

2. Determine the comensation expense for the stock option plan in 2013.

3. What is the effect of forfeiture of the stock options on Ensor's financial statements for 2014 and 2015?

4. How should Ensor account for the exercise of the options in 2017?

View complete question

Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92770401

Have any Question?Write your Review or question?

Related Questions in Accounting Basics

Question - a 1000 investment pays 10 percent compounded

Question - A $1,000 investment pays 10 percent compounded annually for 2 years; another pays 10 percent compounded semiannually for 2 years. Calculate the future value of both investments at the end of year 2, and explai ...

Question critical thinking costs and benefits of import

Question: Critical Thinking: Costs and Benefits of Import Quotas In 1980, automobile manufacturers in the United States asserted that import quotas be instituted on foreign-produced vehicles marketed in the United States ...

Thinking of the middle east identify where you encounter

Thinking of the Middle East, identify where you encounter products, services, or food items that should be relatively uniform and are based on standard inputs or costs. Identify the items, their standard components, and ...

Question -what are the factors that affect the decision to

Question - What are the factors that affect the decision to prosecute an entity? How can computers and technology help in investigating a fraud? What kinds of challenges can the involvement of technology present to a cas ...

Question you will write a 6-10-page research-based paper in

Question: You will write a 6-10-page research-based paper in current APA format that compares and contrasts the various business valuation approaches. The paper must include at least 4 professional/scholarly references i ...

Question - on january 1 park corporation and strand

Question - On January 1, Park Corporation and Strand Corporation had condensed balance sheets as follows: Park Strand Current assets $ 115,000 $ 22,150 Noncurrent assets 93,000 44,100 Total assets $ 208,000 $ 66,250 Curr ...

Question - convertible preferred stocklove company issued

Question - Convertible Preferred Stock Love Company issued LDDEI shares of convertible preferred stock, $1,000 par, for 103 (103% of face value) on June 30, 2014. Each preferred share was convertible into 10 shares of co ...

Question - f l wright architects incorporated as licensed

Question - F. L. Wright Architects incorporated as licensed architects on September 1, 2018. During the first month of the operation of the business, these events and transactions occurred: Sept. 1 Stockholders invested ...

Question - texas roadhouse opened a new restaurant in

Question - Texas Roadhouse opened a new restaurant in October. During its first three months of operation, the restaurant sold gift cards in various amounts totaling $2,900. The cards are redeemable for meals within one ...

Question - a 13-year annuity pays 2800 per month and

Question - A 13-year annuity pays $2,800 per month, and payments are made at the end of each month. The interest rate is 12 percent compounded monthly for the first seven years, and 10 percent compounded monthly thereaft ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Accounting Basics Expert