Buy here : http :// homework . plus / acc-345-module-3-2-homework-solut ions /
Product Description
Exercise 6-11 , p . 397
Current accounting rules specify that companies must recognize the cost of compensating employees through stock options ( ESOs ) on the income statement as part of share-based compensation expense .
a . Briefly describe the accounting for ESOs .
b . Why is there a cost when a company grants ESOs with an exercise price equal to the current market price ?
c . Critics claim that ESO accounting recognizes the costs but not the benefits that arise from granting ESOs , such as improved employee motivation and employee retention . Is this true ?
d . Discuss how you would deal with the compensation expense arising from ESOs if you were ( 1 ) an equity analysts and ( 2 ) a credit analyst .
Problem 6-6 , p . 402
a . For 2009 , 2010 , and 2011 identify Colgate ’ s ( 1 ) tax payment / obligation if it paid the statutory tax rate , ( 2 ) tax provision made in the books , and ( 3 ) the actual tax payment / obligation . Broadly quantify how Colgate ’ s statutory tax payment differs from its actual tax payment . Also explain why these differences occur .