On December 31, 2010, Beckford Company issues 122,100 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 $9. The fair value of the SARs is estimated to be $5 per SAR on December 31, 2011; $2 on December 31, 2012; $10 on December 31, 2013; and $8 on 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	Cummulative Comp Recognizable	% Accrued	Comp Accrued to Date	Expense 2011	Expense 2012	Expense 2013	Expense 2014
12/21/11
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 & Explanation	Debit	Credit

(c) Prepare the entry on December 31, 2014, assuming that all 122,100 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 & Explanation	Debit	Credit