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Which amounts go in the compensation accrued to date column and the expenses column for each year. On December 31, 2021, Coronado Company issues 128,000
Which amounts go in the compensation accrued to date column and the expenses column for each year.
On December 31, 2021, Coronado Company issues 128,000 stock-appreciation rights to its officers entitling them to receive cash for the difference between the market price of its stock and a pre-established price of $9. The fair value of the SARs is estimated to be $4 per SAR on December 31, 2022; $1 on December 31, 2023; $9 on December 31, 2024; and $7 on December 31, 2025. The service period is 4 years, and the exercise period is 7 years. Your answer is partially correct. Prepare a schedule that shows the amount of compensation expense allocable to each year affected by the stock-appreciation rights plan. (Ifthe compensation decreases from prior year enter the amountasa negative number in the tablee.g. -25,000 or (25,000).) Date 12/31/22 12/31/23 12/31/24 12/31/25 Fair Value 4 1 9 7 Cumulative Compensation Recognizable 512,000 128,000 1,152,000 896,000 Percentage Accrued 25 50 75 100 Compensation Accrued to Date 128,000 256,000 64,000 -64,000 864,000 -800,000 Expense 2022 128,000 Expense 2023 Expense 2024 256,000 -64,000 Expense 2025 800,000
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