Hammerstein Corporation Offers a Variety of Share-Based Compensation Plans to Employees

question 220

Essay

Hammerstein Corporation offers a variety of share-based compensation plans to employees. Under its restricted stock award plan, the company, on January 1, 2018, granted 2 million of its $1 par common shares to various division managers. The shares are subject to forfeiture if employment is terminated within four years. The common shares have a market price of $20 per share on the award date.
Required:
(1.) Determine the total compensation cost from these restricted shares.
(2.) Prepare the appropriate journal entry to record the award on January 1, 2018.
(3.) Prepare the appropriate journal entry to record compensation expense on December 31, 2018.
(4.) Suppose a 15% forfeiture rate was expected prior to vesting. Determine the total compensation cost, assuming the company follows the fair value approach and chooses to anticipate forfeitures at the grant date.

Acknowledge the multi-organ system involvement in maintaining body functions.

Describe the anatomical relationships and positional descriptors within the human body.

Understand the distinct features and functions of different body systems, such as the digestive, respiratory, and urinary systems.

Grasp the concepts of body temperature regulation, including the role of the hypothalamus and physiological mechanisms like vasoconstriction.

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Definitions:

Exempt Employee

An employee who is exempt from overtime pay and minimum wage requirements, typically based on their job duties and salary level.

FLSA

The Fair Labor Standards Act, a US labor law that sets out minimum wage, overtime pay eligibility, recordkeeping, and child labor standards for full-time and part-time workers in the private sector and in federal, state, and local governments.

Exempt Workers

Employees not covered by the Fair Labor Standards Act (FLSA), often not eligible for overtime pay due to their job type.

Promissory Estoppel

A legal principle preventing a party from retracting a promise which the other party has reasonably relied upon to their detriment.