Answered step by step
Verified Expert Solution
Question
1 Approved Answer
what is the compensation expense related to the SARs for the year ending December 31, 2017? Q #22 36. On January 1, 2016, Marietta Company
what is the compensation expense related to the SARs for the year ending December 31, 2017?
Q #22 36. On January 1, 2016, Marietta Company granted stock appreciation rights (SARs) to the president, which permitted her to receive cash or stock for the difference between the quoted market price and P50 for 2,000 shares of the company's stock on the exercise date. The service period ends on December 31, 2018, and the rights must be exercised by December 31, 2021. Assume that on December 31, 2019, the president exercises all of her rights and receives cash. Using an options Pricing model, the estimated fair values of the SARS were as follows: Exhibit 16-8 January 1, 2016 P10 December 31, 2016 15 December 31, 2017 20 December 31, 2018 December 31, 2019 What is the compensation expense related to the SARS for the year ending December 31, 2017? a. P13, 333 c. P26, 667 b. P16, 667 d. P40,000Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started