BUSINESS COLLEGE

On January 1, 2017, Sheridan Company established a stock appreciation rights plan for its executives. It entitled them to receive cash at any time during the next four years for the difference between the market price of its common stock and a pre-established price of $20 on 114000 SARs. Current market prices of the stock are as follows: January 1, 2017
$35 per share

December 31, 2017
38 per share

December 31, 2018
30 per share

December 31, 2019
33 per share


Compensation expense relating to the plan is to be recorded over a four-year period beginning January 1, 2017.

What amount of compensation expense should Sheridan recognize for the year ended December 31, 2018?

Answers

Answer 1
Answer:

Answer:

$1,140,000

Explanation:

AS AT December 2018, the market price ended at 30 USD Which is 10 USD above pre established price on the 114,000 SARs

thus compensation for the year ended 2018 will be 10 x 114,000


Related Questions

HIGH SCHOOL

Your original purchase price was $950.00 plus 5% sales tax. You enter into an agreement where the interest (12.5% APR) is waived for the first 12 months provided you make the required monthly payments; otherwise the interest is accrued from the date of purchase. You missed the first payment due date. The late fee is $35.00. How much is the interest? $10.39
$9.90
$124.69
$118.75

Answers

Given:
Purchase Price: 950
Sales tax: 5% of 950 = 47.50
Total amount applied for credit: 950 + 47.50 = 997.50
APR = 12.5%
Monthly interest rate: 12.5% / 12 = 1.0417%

Interest = 997.50 x 1.0417% = 10.3910 or 10.39

*I assumed that the sales tax paid was included in the credit card payment. Thus, interest for said tax was also computed. The late fee charged was not part of my computation because it is not a part of the original amount. 

Answer:

interest is $10.39

Explanation:

Give data:

Purchase price is $950.00

sales tax= 5%

APR = 12%

Late fee is $35

Purchase price after sales tax will be

Monthly rate will be

Interest on purchase price

hence interest is $10.39

HIGH SCHOOL

__________ emphasizes that there is "one best way" to perform a job or task in order to increase productivity. the "one best way" could be identified by studying each task and developing precise procedures.

Answers

The answer is scientific management. Scientific management is a theory of management that analyzes and produces a workflow. Its main aim is improving economic efficiency, especially labor productivity and is one of the earliest attempts to apply science to the engineering of processes and to management. The theory uses engineering science and mathematics to reduce waste and increase the efficiency of the methods and process of production.
Scientific Management  
This is a hypothesis of administration that investigates and combines work processes. Its fundamental target is enhancing monetary effectiveness, particularly work profitability. It was one of the most punctual endeavours to apply science to the building of procedures and to administration.
MIDDLE SCHOOL

What is a market that runs most efficiently when one large firm supplies all of the output referred to as?

Answers

What is a market that runs most efficiently when one large firm supplies all of the output referred to as? Natural monopoly. A natural monopoly happens when there are high fixed costs or start-up costs when running a business in certain industries. A natural monopoly example are pipelines that run for water and gas. This is because they are expensive to start and run but also extremly necessary and specific to the industry.

The answer to this question is Natural monopoly.

COLLEGE

Boxer Company owned 16,000 shares of King Company that were purchased in 2016 for $440,000. On May 1, 2018, Boxer declared a property dividend of 1 share of King for every 10 shares of Boxer stock. On that date, there were 50,000 shares of Boxer stock outstanding. The market value of the King stock was $22 per share on the date of declaration and $38 per share on the date of distribution. By how much is retained earnings reduced by the property dividend?

Answers

Answer:

By 110,000 the retained earnings reduced by the property dividend.

Explanation:

Retained Earnings: The retained earnings is that earnings which is left after all payments relating to the business expenses, shareholder dividend. The earnings which is to be retained so that it can come in use in near future.

For retained earning calculation, the stock market value is recorded when the date is declared not on distribution date.

So, the calculation is computed below:

As the 50,000 shares is given for every 10 shares. So, first we have to compute for 1 share which comes by dividing shares to number of shares i.e.  50,000 shares ÷ 10 shares = 5,000 for 1 share.

Now, multiply by market value which comes = 5,000 × $22 = $110,000.

So, by 110,000 the retained earnings reduced by the property dividend.

HIGH SCHOOL

The​ ________ is a budget based on multiple levels of projected sales or production.

Answers

Answer: The Flexible Budget

Explanation:

A flexible budget is a budget that is prepared to cater for various levels of activity, i.e. differing levels of budget production or sales units. It is a budget that helps management prepare for different scenarios and quickly compute variances no matter the level of activity.

It is better than a static budget, which doesn't make adequate provision for circumstances that could be beyond the company's influence and control.

COLLEGE

When computing WACC, you should use the: Multiple Choice pretax yield to maturity because it considers the current market price of debt. pretax cost of debt because it is the actual rate the firm is paying its bondholders. pretax cost of debt because most corporations pay taxes at the same tax rate. aftertax cost of debt because interest is partially, if not fully, tax deductible. current yield because it is based on the current market price of debt. g

Answers

Answer:

after tax cost of debt because interest is partially, if not fully, tax deductible.

Explanation:

The debt requires fixed payment in the form of interest as attached to it. Also, since it is mandatory, it is an expense and not an appropriation of profits or earnings.

Further as the tax is payed on income after providing for all expenses, that is after providing for the interest expense also, the tax expense is reduced because of reduction in profit from interest expense.

Thus, on the net effect the company's cost of debt is the payment of interest less the tax benefit.

COLLEGE

In a perfectly competitive market in the long run, after all adjustments have occurred, an increase in demand causes equilibrium price to:

Answers

Spike before falling to the equilibrium level
COLLEGE

The site is busy with many taxpayers waiting for assistance. All volunteers are busy preparing tax returns. Can you quality review
the return you just prepared instead of waiting for someone else to
quality review the return?
A. Yes, if it is a returning taxpayer.
B. Yes, with approval of the site coordinator.
C. No, self review is never an acceptable quality review method.
D. No, unless you are certified at the Advanced level.

Answers

Answer:C

Explanation:

Answer:

The correct answer is letter "C": No, self review is never an acceptable quality review method.

Explanation:

The Internal Service Revenue (IRS) offers two volunteer programs so taxpayers can get assistance in filing their tax returns. Those programs are the Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE).  

However, each volunteer is appointed one specific function. When it comes to the Quality Review Process, there is one volunteer only dedicated to the reviews of file returns submitted in every authorized site. Volunteers who interview taxpayers to fill out the tax return cannot perform the Quality Review.

HIGH SCHOOL

Sara loves to go hiking. This week she hiked 3 miles on Monday, 4 miles on Tuesday, and 3 miles on Thursday. Last week Sara hiked 8 miles. How many more miles did Sara hike this week than last week?*

Answers

2 miles more than last week
Well, we must first add the miles from this week, which is: 3+3+4, which equals 10. Now, all we have to do is subtract 8 from 10 to see how many more miles she hiked. Your answer would be 2. Hope this helps! ^_^
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