Questions from Intermediate Accounting

Q: Saver Rio Ltd. purchased options to acquire 1,000 common

Saver Rio Ltd. purchased options to acquire 1,000 common shares of Spender Limited for $20 per share within the next six months. The premium (cost) related to the options was $500. How should this be...

Q: List the types of stock compensation plans and discuss the objectives of

List the types of stock compensation plans and discuss the objectives of effective stock compensation plans.

Q: Explain the differences between employee and compensatory option plans and other options

Explain the differences between employee and compensatory option plans and other options.

Q: On January 1, 2017, Blaine Corporation granted 6,000

On January 1, 2017, Blaine Corporation granted 6,000 options to executives. Each option entitles the holder to purchase one share of Blaine’s common shares at $35 per share at any time after January 1...

Q: Applegate Inc. established a share appreciation rights (SARs) program

Applegate Inc. established a share appreciation rights (SARs) program on January 1, 2017, which entitles executives to receive cash at the date of exercise for the difference between the shares’ fair...

Q: Spencer Ltd. established a share appreciation rights (SARs) program

Spencer Ltd. established a share appreciation rights (SARs) program on January 1, 2017, which entitles executives to receive cash at the date of exercise (anytime in the next three years) for the diff...

Q: The following is partial information related to Siri Ltd.’s non

The following is partial information related to Siri Ltd.’s non-pension, post-retirement health care benefit plan at December 31, 2017: Defined post-retirement benefit obligation, accounting basis………...

Q: On February 1, 2017, Daily Produce Ltd. entered into

On February 1, 2017, Daily Produce Ltd. entered into a purchase commitment contract to buy apples from Farmers Corporation. According to the contract, Daily Produce could settle the contact on a net b...

Q: On January 1, 2017, Ginseng Inc. entered into a

On January 1, 2017, Ginseng Inc. entered into a forward contract to purchase U.S. $6,000 for $6,336 Canadian in 30 days. On January 15, the fair value of the contract was $40 (reflecting the present v...

Q: Refer to BE16-4. Assume the same facts except that

Refer to BE16-4. Assume the same facts except that the forward contract is a futures contract that trades on the Futures Exchange. Ginseng Inc. was required to deposit $30 with the stockbroker as a ma...