TOPIC: Share-based compensation: Share appreciation rights ABC Company granted 300 share appreciation rights to...
90.2K
Verified Solution
Link Copied!
Question
Accounting
TOPIC: Share-based compensation: Share appreciation rights
ABC Company granted 300 share appreciation rights to each of the 500 employees on January 1, 2020. The rights are due to vest on December 31, 2023 with payment being made on December 31, 2023 and expire on December 31, 2024. Only 75% of the awards vested.
Share price
January 1, 2020 (pre-determined price)
150
December 31, 2020, 2021, and 2022
180
December 31, 2023
210
December 31, 2024
190
The share appreciation rights were exercised on December 31, 2024.
Requirements: A. Prepare all necessary entries for the year. B. Compute for the compensation expense for: 1. 2020 2. 2022 3. 2023 4. 2024 C. Compute for the accrued salaries payable for the year ended: 5. 2020 6. 2021 7. 2023 8. 2024 (prior to the exercise of the rights)
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!
