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On January 1, 2018, Whiting Record Company (WRC) offered its top management stock appreciation rights with the following terms: Service period: 2 years Number of
On January 1, 2018, Whiting Record Company (WRC) offered its top management stock appreciation rights with the following terms: Service period: 2 years Number of shares: 10,000 Predetermined price: $20 a share The stock appreciation is to be paid in cash upon exercise. The market value of WRC common was as follows: Market Price Per Share Total Fair Value December 31, 2018 $24 $40,000 December 31, 2019 $28 $80,000 How much should be recorded as an expense for 2019 for the stock appreciation rights?
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