Bowles Company granted options on January 1, 2017, permitting
executives to purchase 800,000 of the company’s $1 par common stock
within the next five years, but not before December 31, 2020 (the
vesting date). The exercise price is set at the stock’s market
price on the date of grant, $40 per share. The fair value of the
options, estimated by an appropriate option pricing model, is $5
per option. At 12/31/17, 90% of the options are estimated to vest,
and the stock’s market value is $52/share. How much compensation
expense should be recognized in 2016?
Pension plans in which employers promise to place a certain
percentage of an employee’s wages into an investment fund are
referred to as:
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Post-retirement benefits. |
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Defined contribution plans. |
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Post-employment benefits. |
Under US GAAP, the projected benefit obligation (PBO) would be
increased by:
|
Actual return on plan assets that is lower than expected. |
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Amortization of prior service cost. |
|
An increase in the actuary’s assumed discount (settlement)
rate. |
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An increase in the estimated life expectancy of employees |
Which category of cash flows may be presented by firms using the
indirect or direct presentation format?
For a US Firm, Which of the following would not be included in
the operating activities section of the Statement of Cash
Flows?
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Paying $30,000 for income taxes |
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Paying $75,000 of dividends to common stockholders |
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Paying $250,000 of interest on outstanding bonds payable |
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Received $500,000 in dividends from passive investments
classified as trading |