23

Required information A company granted 9.000 stock appreciation rights (SARs) to employees on January 1, 2021. The SARs entitle the employees to elect to receive cash or stock equal to the difference between the market price at exercise date and the market price at grant date. . The SARS vest on December 31, 2023 and expire on December 31, 2026 The $1 par common shares have a market price of $4200 per share on grant date All recipients are expected to remain employed through the vesting date The fair value of the SARS as estimated by an appropriate option pricing model is the following 112021 12312021 12312022 12312023 Fair value per SAR (est) $16.00 $17.00 $6.80 $8.50 All 9.000 SARs are exercised on April 12. 2024, when the company's stock price is $55.00. All employees choose to receive cash Use the information above to answer the questions below Compensation expense for 2021 is Cack to select)