On January 2, 20X6, Morey Corp. granted Dean, its president, 20,000 stock appreciation rights. On exercise, Dean is entitled to receive cash for the excess of the stock's market price on the exercise date over the market price on the grant date. The rights are exercisable beginning on January 2, 20X8 and expiring on December 31, 20X8. The market price of Morey's stock was $30 on January 2, 20X6 and $45 on December 31, 20X6. Morey used the Black-Sholes-Merton pricing model and estimated the values of each right at $16 each. As a result of the stock appreciation rights, the company should recognize compensation expense for 20X6 of $300,000 b. $320,000 $150,000 d. $160,000 a. C. At December 31, 20X7, the market price of the stock is $47 and the Black-Sholes-Merton pricing model estimated the value of the option at $18. At December 31, 20X7, Morey Corp should report on its balance sheet a liability for stock appreciation rights of $340,000 b. $360,000 $ 40,000 d. $ 60,000 a. C