Problem #22: Accounting for Stock Appreciation Rights (SARs) Clark Industries, Inc. establishes...
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Accounting
Problem #: Accounting for Stock Appreciation Rights SARs
Clark Industries, Inc. establishes a shareappreciation rights plan on January The plan entitles executives to receive cash at the date of exercise for the difference between the market price of the stock and the preestablished price of $ on SARs. The service period runs for two years
The value of the SARs at the end of each of year are as follows:
Quantity of stock:
Preexisting price of stock
$
Value of SAR's at
$
Value of SAR's at
$
Value of SAR's at
$
Requirement: Record the journal entries for the threeyear period to record compensation expense relative to the SARs Note: Three Journal entries required
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