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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
For its first year of operations, Cable Corp. recorded a $100,000
expense in its tax return that will not be recorded in its
accounting records until next year. There were no other
differences between its taxable and financial statement income.
Cable's effective tax rate for the current year is 45%, but a 40%
rate has already been passed into law for next year. In its year-
end balance sheet, what amount should Cable report as a
deferred tax asset(liability)?