Exercise 16-29 On December 31, 2010, Beckford Company issues150,000stock-appreciation rights to its officers entitling them to receive cash for the difference between the market price of its stock and a pre-established price of $10. The fair value of the SARs is estimated to be $4per SAR on December 31, 2011; $1on December 31, 2012; $10on December 31, 2013; and $9on December 31, 2014. The service period is 4 years, and the exercise period is 7 years. (a)Prepare a schedule that shows the amount of compensation expense allocable to each year affected by the stock-appreciation rights plan.(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	Compensation Accrued to Date	Expense 2011	Expense 2012	Expense 2013	Expense 2014
12/31/11	$	$		%	$	$	$	$	$
12/31/12				%
12/31/13				%
12/31/14				%	$

(b)Prepare the entry at December 31, 2014, to record compensation expense, if any, in 2014.(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.)

Account Titles and Explanation	Debit	Credit

(c)Prepare the entry on December 31, 2014, assuming that all 150,000 SARs are exercised.(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.)

Account Titles and Explanation	Debit	Credit

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