Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hi, Ma'am/Sir! Can someone help me to answer this questions? I need a computational and explanation on every question. Thank you! :> 3. On January

Hi, Ma'am/Sir! Can someone help me to answer this questions? I need a computational and explanation on every question. Thank you! :>

image text in transcribed
3. On January 2, 20x3, Morey Corp. granted Dean, its president, 20,000 stock appreciation rights for past services. Those rights are exercisable immediately and expire on January 1, 20x6. On exercise, Dean is entitled to receive cash for the excess of the stock's market price on the exercise date over the market price on the grant date. Dean did not exercise any of the rights during 20x3. The market price of Morey's stock was P30 on January 2, 20x3 and P45 on December 31, 20x3. As a result of the stock appreciation rights, Morey should recognize compensation expense for 20x3 of a. 0 b. 100,000 c. 300,000 d. 600,000 (AICPA) 4. On January 1, 20x2, Adams Company offered its top management stock appreciation rights with the following terms: Option price (predetermined) ............." P20 per share Number of shares 10,000 Holding period . 2 years Expiration period . Dec. 31, 20x2 The stock appreciation is to be paid in cash upon exercise. The market value of Adam's common was as follows: P20 per share Dec. 31, 20x2 P24 per share Dec. 31, 20x3 P28 per share How much should Adams disclose on the December 31, 20x3, balance sheet as the liability for stock appreciation rights? a. 80,000 b. 60,000 c. 40,000 d. 25,000 (AICPA)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Best Practices

Authors: Steven M Bragg

7th Edition

1118404149, 9781118404140

More Books

Students also viewed these Accounting questions

Question

3. It is the commitment you show that is the deciding factor.

Answered: 1 week ago