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Capulet Company establishes a stock-appreciation rights program that entitles its new president Ben Davis to receive cash for the difference between the market price of
Capulet Company establishes a stock-appreciation rights program that entitles its new president Ben Davis to receive cash for the difference between the market price of the stock and a pre-established price of $30 (also market price) on December 31, 2013, on 30,000 SARS. The date of grant is December 31, 2013, and the required employment (service) period is 4 years. President Davis exercises all of the SARs in 2019. The fair value of the SARs is imated to be S6 per SAR on December 31, 2014; $9 on December 31, 2015; $15 on December 31, 2016; $6 on December 31, 2017; and $18 on December 31, 20 Your answer is partially correct. Try again. Prepare a 5-year (2014-2018) schedule of compensation expense pertaining to the 30,000 SARs granted president Davis. (If the compensation decreases from prior year enter the amount as a negative number in the table e.g.-25,000 or (25,000).) Date Fair Value Cumulative Compensation Recognizable Percentage Accrued Comp n Accrued to Date Expense 2014 Expense 2015 Expense 2016 Expense 2017 Expense 2018 12/31/14 800 500 12/31/15 700 3500 0250 3750 157500 1800D 6000 12/31/1 500 157500 12/31/17 1800 12/31/18 400 Your answer is incorrect. Try again. Prepare the journal entry for compensation expense in 2014, 2017, and 2018 relative to the 30,000 SARs. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit 2014 2017
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