The Davis Corporation granted a share appreciation right plan to its employees onDecember 31, 20x0. A total of 300,000 share appreciation rights were granted. Thevesting period ends on December 30, 20x2. The exercise period starts December 31,20x2 and ends December 31, 20x4.Data on the fair values of the SAR's, the average cash out amount, the number of SAR'sexercised, and management's estimate of the % of SAR's that will vest is as follows:DateFair Value ofeach SAR atyear-endAverage cashout for exercisedSARS during theyearAmount ofSARSexercisedEstimate of % ofSARS that willvestDecember 31,20x1$775%December 31,20x211$885,00072% (actual)December 31,20x391057,000December 31,20x41274,000Required -a. What is the compensation expense for the year ended December 31, 20x2?b. What is the compensation expense for the year ended December 31, 20x4?

Year 1 (31st Dec 20X1): Expense = total no of SAR*FV at year end*estimate of % that will best / no…

Answered: a. What is the compensation b. What is…

a. What is the compensation b. What is the compensation expense for the year ended December 31, 20x2? expense for the year ended December 31, 20x4?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 6P

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