On January 1,2020, Red Bull Corporation issued 10,000 share appreciation rights to its selected employees that vest on January 1,2023 provided these employees are still in the employ of the company. Each SAR provides for a cash payment equal to the excess of the company's share market price on exercise date over P 12O.The company's share price on December 31, 2020, December 31, 2021 and December 31,2022 are P 145, P I50 and P 160, respectively. All of the share appreciation rights were exercised in 2023 when the share market price was P 165. The fair value of each SAR is made available to you at the following dates: December 31, 2020 P 26.80 December 31, 2021 31.20 December 31, 2022 39.40 REQUIRED: a.) How much liability shall be presented in the statement of financial position at the end of each 2021 and 2022, respectively! year 2020, b.) Prepare all the entries for the years 2020 through 2023 to record the foregoing.

On January 1,2020, Red Bull Corporation issued 10,000 share appreciation rights to its selected employees that vest on January 1,2023 provided these employees are still in the employ of the company. Each SAR provides for a cash payment equal to the excess of the company's share market price on exercise date over P 12O.The company's share price on December 31, 2020, December 31, 2021 and December 31,2022 are P 145, P I50 and P 160, respectively. All of the share appreciation rights were exercised in 2023 when the share market price was P 165. The fair value of each SAR is made available to you at the following dates: December 31, 2020 P 26.80 December 31, 2021 31.20 December 31, 2022 39.40 REQUIRED: a.) How much liability shall be presented in the statement of financial position at the end of each 2021 and 2022, respectively! year 2020, b.) Prepare all the entries for the years 2020 through 2023 to record the foregoing.

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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On January 1, 2019, Phoenix Corporation adopts a performance-based share option plan for 25 executives, with the number of shares based on the yearly increase in sales. At the end of 2019, based on a 10% increase in sales, it expects that each executive will be granted 150 options and that the fair value of an option expected to vest is 15.75. Phoenix expects a turnover rate of 15% over the 3-year service period. Determine the compensation expense for 2019 for this plan.
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