Expense

$2022$

Expense Expense Expense

$2023,2024,2025$

$

larr Unit $8$ Lab $301.$

Question $3$ of $3$

$\frac{2\mathrm{.}82}{13},$vdots

Current Attempt in Progress

On December $31,2021,$ Novak Company issues $127,000$ stock$-$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 $$10.$ The fair value of the SARs is estimated to be $$4$ per SAR on December $31,2022$; $$1$ on December $31,2023$; $$10$ on December $31,2024$; and $$9$ on December $31,2025.$ 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$.-25,000$ or $(25,000)).$