Question
Teal, Inc. established a stock-appreciation rights (SARs) program on January 1, 2020, which entitles executives to receive cash at the date of exercise for the
Teal, Inc. established a stock-appreciation rights (SARs) program on January 1, 2020, which entitles executives to receive cash at the date of exercise for the difference between the market price of the stock and the pre-established price of $20 on 4,400 SARs. The required service period is 2 years. The fair value of the SARs are determined to be $5 on December 31, 2020, and $10 on December 31, 2021. Compute Teals compensation expense for 2020 and 2021.
| Teals compensation expense 2020 | $enter a dollar amount | |
|---|---|---|
| Teals compensation expense for 2021 | $enter a dollar amount |
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College Accounting Chapters 1-30
Authors: David Haddock, John Price, Michael Farina
16th Edition
1260247902, 978-1260247909
