This preview shows page 1. Sign up to view the full content.
Unformatted text preview: Circle your answer. +4 for either 10 million total options: $50 million total OR $40 million after forfeiture 2. Prepare the appropriate journal entry (if any) to record Vacaros compensation expense on December 31, 2012 . +1 Compensation Expense 7.5M +1 PIC-stock options 7.5M credit if accounts are correct (but amounts are incorrect. . 12.5M each year based on initial estimate; 10M each year after consideration of forfeiture. Based on forfeiture, cumulative exp recorded through the end of year 2 = 20M; 12.5M was recorded in prior year, so amount needed for 2012 is 7.5M. 3. Prepare the appropriate journal entry to record the exercise of the options on January 15, 2015. +1 PIC-stock options 40M +1 Cash 148M +1 Common stock 8M +1 PIC-excess of par (or APIC) 180M credit if accounts are correct (but amount are incorrect)....
View Full Document
This note was uploaded on 10/10/2011 for the course BUSINESS 522 taught by Professor Paul during the Spring '11 term at Ohio State.
- Spring '11