FA08Quiz9Key - Financial Accounting Fall 2008 Quiz 9 Name:...

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Financial Accounting Quiz 9 Name: Fall 2008 1. (1 point) REDMOND, Wash. — September 22, 2008 — Microsoft Corp. today announced that its board of directors approved a new share repurchase program authorizing up to an additional $40 billion in share repurchases with an expiration of September 30, 2013. a. Suppose Microsoft indeed buys back $40 billion of its own shares of common stock. For simplicity, assume the transaction occurs all at once. Provide the journal entry. b. Suppose those $40 billion in shares are later resold for $60 billion. Provide the journal entry. 2. (1 point) Suppose that on January 1, 2008, Cisco issues employee stock options (ESOs) with a fair value of $100 million. 50% of the ESOs vest at the end of 2008. The remaining 50% vest at the end of 2009. 10% of the ESOs are expected to be forfeited (10% of the employees are expected to quit over the next two years), so the total amount to be expensed is $90 million. Provide the journal entry to record compensation expense (debit Compensation
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This note was uploaded on 01/20/2012 for the course ACCOUNTING 101 taught by Professor Unknown during the Spring '08 term at Carnegie Mellon.

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FA08Quiz9Key - Financial Accounting Fall 2008 Quiz 9 Name:...

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