Palm Beach Corporation Has a Stock Option Plan for Its

question 92

Essay

Palm Beach Corporation has a stock option plan for its continuing employees that provides that each qualified employee may receive an option for a specified number of shares of the company's $1 par value stock.Employees must continue working for the company for three years to earn the grants,which may be exercised any time after the three years,at an option price of $10 per share.On January 1,2014,employees were granted options for 3,000 shares when the market price was $16 per share.The fair value of the options was $24 each.The expected annual forfeiture rate is 5%.The accounting period ends December 31.Palm Beach uses SFAS No.123R in accounting for these options.Assume that the estimated and actual forfeiture rates are equal.
Required:

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Definitions:

Mental Health

The level of psychological well-being or an absence of mental illness; it encompasses an individual's emotional, psychological, and social well-being.

High-hope Individuals

People who possess a strong belief in their ability to achieve goals and find pathways to overcome obstacles.

Autonomy

The ability or right to make one's own decisions without interference from others.

Organizational Behavior

The study of how individuals and groups interact within an organization and how this affects the organization’s performance.