Class18 - Solutions - EXERCISE 16-27 (a) 1/1/07 Unearned...

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EXERCISE 16-27 (a) 1/1/07 Unearned Compensation. .................. 100,000 Common Stock (4,000 x $5). ..... 20,000 Paid-in Capital Excess of Par. ... 80,000 12/31/08 Compensation Expense. .................... 25,000 Unearned Compensation ($100,000 ÷ 4) 25,000 (b) 3/4/09 Common Stock. .................................. 20,000 Paid-in Capital Excess of Par. ........... 80,000 Unearned Compensation. ........... 50,000 Compensation Expense (2 x $25,000) 50,000 1
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(a) Schedule of Compensation Expense Stock Appreciation Rights (150,000) Date Fai r Val ue Cumulative Compensati on Recognizabl e Percenta ge Accrued Compensati on Accrued to Date Expense 2004 Expense 2005 Expense 2006 Expense 2007 12/31/04 $4 $600,000 25% $ 150,000 $150,00 0 (75,000 ) $(75,000 ) 12/31/05 1 150,000 50% 75,000 1,050,000 $1,050,00 0 12/31/06 10 1,500,000 75% 1,125,000 225,000 $225,00 0 12/31/07 9 1,350,000 100% $1,350,000 (b) Compensation Expense. .............................................................. 225,000
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This note was uploaded on 12/04/2009 for the course MGMT 351 taught by Professor Staff during the Spring '08 term at Purdue University-West Lafayette.

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Class18 - Solutions - EXERCISE 16-27 (a) 1/1/07 Unearned...

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