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On January 1, 2008, ABC Company offered its chief executive officer, stock appreciation rights with the following terms: Predetermined price 100 per share Number of

On January 1, 2008, ABC Company offered its chief executive officer, stock appreciation rights with the following terms: Predetermined price 100 per share Number of shares 10,000 shares Service period-3 years 2008, 2009 and 2010 Exercise date December 31, 2010 The stock appreciation rights are exercised on December 31, 2010. The quoted price of the ABC stock is as follows: 118 on December 31, 2008, 112 on December 31, 2009 and 124 on December 31, 2010. ABC Company should record 2010 compensation expense at a. 160,000 b. 60,000 c. 80,000 d. 20,000 e. 30,000

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