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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! :>

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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)

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