Kogo Incorporation started a share appreciation plan on January 1, 2017, when it granted 100,000 rights to

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Kogo Incorporation started a share appreciation plan on January 1, 2017, when it granted 100,000 rights to its executives. The vesting period is 2 years. The stock appreciation rights are settled for cash. The plan expires on January 1, 2019. The fair value of Kogo's SARs for the years ended December 31, 2017 and 2018, are as follows:
Date                                                            Fair Value
December 31, 2017 ........................                $4
December 31, 2018 ........................                $3
All rights are exercised on January 1, 2019, when the fair value is $5. What is the compensation expense in 2017 and in 2018?

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Intermediate Accounting

ISBN: 978-0134730370

2nd edition

Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella

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