Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
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
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started