Identifying and Analyzing Financial Statement Effects of StockBased Compensation
The stockholders equity of Aspen Corporation at December follows.
Preferred stock, $ par value, shares authorized;
shares issued and outstanding $
Common stock, $ par value, shares authorized;
shares issued and outstanding
Paidin capital in excess of par valuepreferred stock
Paidin capital in excess of par valuecommon stock
Retained earnings
Total stockholders equity $
The following transactions, among others, occurred during the following year.
Employees exercised stock options that were granted in and had a threeyear vesting period. These options had an estimated fair value of $ at the grant date, and an exercise price of $ There were no other vested or unvested options after this exercise.
Awarded shares of stock to new executives, when the stock price was $
Sold shares to employees under the companywide stock purchase plan. Under the plan, employees purchased the shares at a discount when the stock price was $ per share.
Granted new stock options, with a strike price of $ and an estimated fair value of $ The options vest over three years.
Required
Prepare the December statement of stockholders equity assuming that the company reports pretax income of $ before the effects of stockbased compensation. Assume the company has a tax rate.
ASPEN CORPORATION
Statement of Stockholders Equity
Preferred Stock Common Stock Retained Earnings
Shares
Issued par $ Paidin
Capital in
Excess Shares
Issued Par $ Paidin
Capital in
Excess
Start of year Answer
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Stock options exercised Answer
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Stock award Answer
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Employee stock purchase Answer
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Stock options granted Answer
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Net income Answer
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End of year Answer
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