STOCK APPRECIATION RIGHTS

Universal Communications grants 10 million SARs to key executives at January2016.

Upon exercise the SARs entitle executives to receive cash or stock equal in value to the excess of the market price at

exercise over the share price at the date of grant. The $1 par common shares have a current market price of $10 per share

The SARs vest at the end of 2019 (cannot be exercised until then) and expire at the end of 2018. The fair value of the SARs,

estimated by an appropriate option pricing model, is $8 per SAR on January 1, 2016. The fair value-estimated at December 31,2016,

2017, 2018, 2019 and 2020, is $8.40, $8, $6, $4.30, and $5, respectively.

Prepare the SARS schedule using the % approach and determine the compensation expense for each year of service. Prepare a schedule that shows the amount of compensation expense allocable to each year affected by the stock-appreciation rights plan. pls show all the work