On January 1, 2016, Margarita Company granted share appreciation rights (SARs) to the president, which...
90.2K
Verified Solution
Link Copied!
Question
Accounting
On January 1, 2016, Margarita Company granted share appreciation rights (SARs) to the president, which permitted her to receive cash or stock for the difference between the quoted market price and $50 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. The per share estimated fair values of the SARs were as follows:
January 1, 2016 $10
December 31, 2016 15
December 31, 2017 20
December 31, 2018 19
December 31, 2019 23
What is the compensation expense related to the SARs for the year ending December 31, 2017?
The answer is $16,667 but could someone explain this to me please?
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
