rcise 16-30 Capulet Company establishes a stock-appreciation rights program that entitles its new president Ben Davis to receive cash for the difference between the market price of the stock and a pre-established price of $30(also market price) on December 31, 2010, on30,000SARs. The date of grant is December 31, 2010, and the required employment (service) period is 4 years. President Davis exercises all of the SARs in 2016. The fair value of the SARs is estimated to be $6per SAR on December 31, 2011; $9on December 31, 2012; $15on December 31, 2013; $6on December 31, 2014; and $18on December 31, 2015. (a)Prepare a 5-year (20112015) schedule of compensation expense pertaining to the30,000SARs granted to president Davis.(If the compensation decreases from prior year enter the amount as a negative number in the table e.g. -25,000 or (25,000).)

Date	Fair Value	Cumulative Compensation Recognizable	Percentage Accrued	Compensation Accrued to Date	Expense 2011	Expense 2012	Expense 2013	Expense 2014	Expense 2015
12/31/11	$	$		%	$	$	$	$	$	$
12/31/12				%
12/31/13				%
12/31/14				%
12/31/15					$

(b)Prepare the journal entry for compensation expense in 2011, 2014, and 2015 relative to the30,000SARs.(Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
2011
2014
2015

SHOW LIST OF ACCOUNTS

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