LO6. On January 2, 2021, for past services, Marigold Corp. granted Nenn Pine, its president, 29,200 stock appreciation rights that are exercisable immediately and expire on January 2, 2022. On exercise, Nenn is entitled to receive cash for the excess of the market price of the stock on the exercise date over the market price on the grant date. Nenn did not exercise any of the rights during 2021. The market price of Marigold's stock was $30 on January 2, 2021, and $45 on December 31, 2021. As a result of the stock appreciation rights, Marigold should recognize compensation expense for 2021 of ________.
LO6. On January 2, 2021, for past services, Marigold Corp. granted Nenn Pine, its president, 29,200 stock appreciation rights that are exercisable immediately and expire on January 2, 2022. On exercise, Nenn is entitled to receive cash for the excess of the market price of the stock on the exercise date over the market price on the grant date. Nenn did not exercise any of the rights during 2021. The market price of Marigold's stock was $30 on January 2, 2021, and $45 on December 31, 2021. As a result of the stock appreciation rights, Marigold should recognize compensation expense for 2021 of ________.
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter17: Business Tax Credits And The Alternative Minimum Tax
Section: Chapter Questions
Problem 5CE
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LO6. On January 2, 2021, for past services, Marigold Corp. granted Nenn Pine, its president, 29,200 stock appreciation rights that are exercisable immediately and expire on January 2, 2022. On exercise, Nenn is entitled to receive cash for the excess of the market price of the stock on the exercise date over the market price on the grant date. Nenn did not exercise any of the rights during 2021. The market price of Marigold's stock was $30 on January 2, 2021, and $45 on December 31, 2021. As a result of the stock appreciation rights, Marigold should recognize compensation expense for 2021 of ________.
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