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On December 31, 2016, Sage Company issues 128,000 stock-appreciation rights to its officers entitling them to receive cash for the difference between the market

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On December 31, 2016, Sage Company issues 128,000 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 $9. The fair value of the SARS is estimated to be $4 per SAR on December 31, 2017: $1 on December 31, 2018: $9 on December 31, 2019; and $7 on December 31, 2020. The service period is 4 years, and the exercise period is 7 years. Your answer is partially correct. 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 eg.-25,000 or (25,000)) Expense 2017 128000 $ Expense 2018 Expense 2019 $ $ Expense 2020 i (64000) i 800000 b2000 i

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