Fundy Corporation issued $10 million stock options on January 1, 2013 to key executives as dcferred compensation. The options have a 5 year vesting schedulc. An option pricing model determined that the fair value of the options on the grant date was S6 per option. Other information related to the stock options included: 10. . common stock has a S2 par value the exercise price of each stock option is $25 the market price of the stock on the date of grant was $25 the options cannot be exercised before January I, 2018 . it was determined in 2014 that 1/6 of the options would not be exercised (forfeited). on January I. 2013. a non-CSU accounting graduate made the following entry in error to account for the granting of stock options: 20,000,000 Retained earnings 20,000,000 Common stock You, being a CSU accounting graduate whom has studied under Mr. McGee, noticed the recording error when you replaced the previous analyst in fiscal year 2015. Prepare the proper adjusting journal entry to fix the recording error and to bring all accounts related to the stock option issuance to their proper balances at December 31. 2015.
Which of the following is not an acceptable method of determining the required annual payment of federal income tax for corporations? A) 100 percent of the prior year's tax liability (with a few exceptions) B) 100 percent of the current year's tax liability C) 100 percent of the estimated current year tax liability using the annualized income method D) All of the choices are acceptable methods of determining the required annual payment of federal income tax for corporations. Explain. Explain.
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