On January 1, Year 1. Tec Corporation grants share appreciation rights to its CEO. Under the plan, the CEO will receive cash for the difference between the quoted merket price and a $40 option price for 2,000 shares of the company's common stock on the exercise date. The service period is 4 years. The fair value per SAR is $18 at the end of Year 1 and $30 at the end of Year 2. The compensation expense for Year 2 would be O $11,000. O b. $39,000. Oc. 99,000. O d. $30,000.
On January 1, Year 1. Tec Corporation grants share appreciation rights to its CEO. Under the plan, the CEO will receive cash for the difference between the quoted merket price and a $40 option price for 2,000 shares of the company's common stock on the exercise date. The service period is 4 years. The fair value per SAR is $18 at the end of Year 1 and $30 at the end of Year 2. The compensation expense for Year 2 would be O $11,000. O b. $39,000. Oc. 99,000. O d. $30,000.
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 8RE: On January 2, 2019, Brust Corporation grants its new CFO 2,000 restricted share units. Each of the...
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Transcribed Image Text:On January 1, Year 1, Tec Corporation grants share appreciation rights to its CEO. Under the plan, the CEO will receive cash for the difference between the quoted market
price and a $40 option price for 2,000 shares of the company's common stock on the exercise date. The service period is 4 years. The fair value per SAR is $18 at the end of
Year 1 and $30 at the end of Year 2. The compensation expense for Year 2 would be
O a. $11,000.
O b. $39,000.
O c. 99,000.
O d. $30,000.
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