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Question 14
Interest cost included in the net pension cost recognized for a period by
an employer sponsoring a defined benefit pension plan represents the
Question 15
At the beginning of 20x4, XCOR Inc. granted executives a total of 2,000
options to purchase the firm's stock beginning in 20x7. The fair value of
each option at grant date was $3. Initially, no forfeitures were
anticipated. During 20x5 however, forfeitures are apparent. The firm
estimates a 2% forfeiture rate each year during the service period. What
amount of compensation expense is recognized for 20x5?
Question 16
Choose the correct statement about restricted stock plans.
Question 17
A stock option plan granted 2,000 options each with a fair value of $2.50
on January 1, 20x4. The option price was $20 per share and the stock
price was $5 on the grant date. The options were exercisable beginning
20x7 and were exercised when the market price of the $5 par stock was
$50. The journal entry to record the issuance of stock to the option
holders at date of exercise will include:
Question 18
On August 31, 20x4, Harvey Co. decided to change from the FIFO
periodic inventory system to the weighted average periodic inventory
system. Harvey is on a calendar year basis. The cumulative effect of the
change is determined
Question 19