Nkansa Corporation granted restricted stock units (RSUs) representing 44 million of its $1 par common shares to executives, subject to forfeiture ifemployment is terminated within four years. After the recipients of the RSUs satisfy the vesting requirement, the company will distribute the shares. Thecommon shares had a market price of $11 per share on the grant date. Ignoring taxes, what is the effect on earnings in the year after the shares aregranted to executives?Multiple Choice$0$484 million$121 millionC$44 million10 ofNextSubmit

Nkansa Corporation granted restricted stock units (RSUs) representing 44 million of its $1 par…

Answered: Nkansa Corporation granted restricted…

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter19: Deferred Compensation

Section: Chapter Questions

Problem 52P

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Second Link Services granted restricted stock units (RSUs) representing 16 million of its $1 par common shares to executives, subject to forfeiture if employment is terminated within four years. After the recipients of the RSUs satisfy the vesting requirement, the company will distribute the shares. The common shares had a market price of $10 per share on the grant date. Ignoring taxes, what is the total compensation cost pertaining to the restricted stock units? What is the effect on earnings in the year after the shares are granted to executives?
First Link Services granted 5.8 million of its $1 par common shares to executives, subject to forfeiture if employment is terminated within five years. The common shares have a market price of $20 per share on the grant date of the restricted stock award. Ignoring taxes, what is the effect on earnings in the year after the shares are granted to executives?
EG Corporation granted restricted stock units (RSUS) representing 32 million of its $1 par common shares to executives, subject to forfeiture if employment is terminated within four years. After the recipients of the RSUS satisfy the vesting requirement, the company will distribute the shares. The common shares had a market price of $6 per share on the grant date. Required: (1.) Ignoring taxes, determine the total compensation cost pertaining to the restricted stock units. (2.) What is the effect on earnings in the year after the shares are granted to executives? Edit View Insert Format Tools Table
Slytherin Services, Inc. granted 8 million of its $1 par common shares to executives subject to foreiture if employment is terminated within three years. The common shares have a market price of $6 per share on the grant date of the restricted stock award. Ignoring taxes, what is the total compensation cost pertaining to the restricted shares (first answer, no dollar signs or commas, rounded to the nearest whole dollar)?
Taxon Corp. granted stock options representing the right to purchase 30 million of its $1 par common shares to executives, subject to forfeiture if employment is terminated within three years. After the recipients of the options satisfy the vesting requirement, the company will allow executives to trade those options. The options had a market price of $8 per share on the grant date. Currently (as of the reporting date) the market price of the options are $24 per share. Ignoring taxes, what is the effect on earnings in the year that the shares are granted to executives? A) $0. B) $30 million. C) $80 million. D) $240 million. O A O B O D
First Link Services granted 6 million of its $1 par common shares to executives, subject to forfeiture if employment is terminated within three years. The common shares have a market price of $24 per share on the grant date of the restricted stock award. 1. Ignoring taxes, what is the total compensation cost pertaining to the restricted shares?2. Ignoring taxes, what is the effect on earnings in the year after the shares are granted to executives?
Niles Company granted 9 million of its no par common shares to executives, subject to forfeiture if employmentis terminated within three years. The common shares have a market price of $5 per share on January 1, 2017, thegrant date of the restricted stock award. When calculating diluted EPS at December 31, 2018, what will be thenet increase in the denominator of the EPS fraction if the market price of the common shares averaged $5 pershare during 2018?

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