Courtland Company issues 25,000 SARS entitling executives to receive cash at the date of exercise for the difference between the market price and $30. The fair value of an SAR on the grant date is $4. The service period is 3 years. At the end of Year 3, the Liability for SARS is $125,000. In Year 4 when the market price of the stock is $42, the SARS are exercised. Which of the following is true when the SARS are exercised?.

Courtland Company issues 25,000 SARS entitling executives to receive cash at the date of exercise for the difference between the market price and $30. The fair value of an SAR on the grant date is $4. The service period is 3 years. At the end of Year 3, the Liability for SARS is $125,000. In Year 4 when the market price of the stock is $42, the SARS are exercised. Which of the following is true when the SARS are exercised?.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter9: Acquisitions Of Property

Section: Chapter Questions

Problem 42P

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