Stock Appreciation Rights: Excess of market price of the share over the pre established price on the exercise date is called share appreciation. Stock appreciation rights gives an employee the right to receive compensation equal to the appreciation in the share. The accounting of these rights is based on how the company classifies this right: as a liability or as equity. To prepare: To prepare journal entries for stock appreciation rights and compensation schedule. Given Information: Pre established price: $30. SARs: 30,000. Period is 4 years. Fair value: $6 per SAR on December 31, 2014; : $9 on December 31, 2015; :$15 on December 31, 2016; : $6 on December 31, 2017; :$18 on December 31, 2018.

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Answer 1

Question

Chapter 16, Problem 30E

To determine

Stock Appreciation Rights: Excess of market price of the share over the pre established price on the exercise date is called share appreciation. Stock appreciation rights gives an employee the right to receive compensation equal to the appreciation in the share. The accounting of these rights is based on how the company classifies this right: as a liability or as equity.

To prepare: To prepare journal entries for stock appreciation rights and compensation schedule.

Given Information: Pre established price: $30.

SARs: 30,000.

Period is 4 years.

Fair value: $6 per SAR on December 31, 2014;

: $9 on December 31, 2015;

:$15 on December 31, 2016;

: $6 on December 31, 2017;

:$18 on December 31, 2018.

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Answer 2

Question

Chapter 16, Problem 30E

To determine

Stock Appreciation Rights: Excess of market price of the share over the pre established price on the exercise date is called share appreciation. Stock appreciation rights gives an employee the right to receive compensation equal to the appreciation in the share. The accounting of these rights is based on how the company classifies this right: as a liability or as equity.

To prepare: To prepare journal entries for stock appreciation rights and compensation schedule.

Given Information: Pre established price: $30.

SARs: 30,000.

Period is 4 years.

Fair value: $6 per SAR on December 31, 2014;

: $9 on December 31, 2015;

:$15 on December 31, 2016;

: $6 on December 31, 2017;

:$18 on December 31, 2018.

Expert Solution & Answer

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Answer 3

Question

Chapter 16, Problem 30E

To determine

Stock Appreciation Rights: Excess of market price of the share over the pre established price on the exercise date is called share appreciation. Stock appreciation rights gives an employee the right to receive compensation equal to the appreciation in the share. The accounting of these rights is based on how the company classifies this right: as a liability or as equity.

To prepare: To prepare journal entries for stock appreciation rights and compensation schedule.

Given Information: Pre established price: $30.

SARs: 30,000.

Period is 4 years.

Fair value: $6 per SAR on December 31, 2014;

: $9 on December 31, 2015;

:$15 on December 31, 2016;

: $6 on December 31, 2017;

:$18 on December 31, 2018.

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Answer 4

Question

Chapter 16, Problem 30E

To determine

Stock Appreciation Rights: Excess of market price of the share over the pre established price on the exercise date is called share appreciation. Stock appreciation rights gives an employee the right to receive compensation equal to the appreciation in the share. The accounting of these rights is based on how the company classifies this right: as a liability or as equity.

To prepare: To prepare journal entries for stock appreciation rights and compensation schedule.

Given Information: Pre established price: $30.

SARs: 30,000.

Period is 4 years.

Fair value: $6 per SAR on December 31, 2014;

: $9 on December 31, 2015;

:$15 on December 31, 2016;

: $6 on December 31, 2017;

:$18 on December 31, 2018.

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Answer 5

Chapter 16, Problem 30E

To determine

Stock Appreciation Rights: Excess of market price of the share over the pre established price on the exercise date is called share appreciation. Stock appreciation rights gives an employee the right to receive compensation equal to the appreciation in the share. The accounting of these rights is based on how the company classifies this right: as a liability or as equity.

To prepare: To prepare journal entries for stock appreciation rights and compensation schedule.

Given Information: Pre established price: $30.

SARs: 30,000.

Period is 4 years.

Fair value: $6 per SAR on December 31, 2014;

: $9 on December 31, 2015;

:$15 on December 31, 2016;

: $6 on December 31, 2017;

:$18 on December 31, 2018.

Answer 6

Chapter 16, Problem 30E

To determine

Stock Appreciation Rights: Excess of market price of the share over the pre established price on the exercise date is called share appreciation. Stock appreciation rights gives an employee the right to receive compensation equal to the appreciation in the share. The accounting of these rights is based on how the company classifies this right: as a liability or as equity.

To prepare: To prepare journal entries for stock appreciation rights and compensation schedule.

Given Information: Pre established price: $30.

SARs: 30,000.

Period is 4 years.

Fair value: $6 per SAR on December 31, 2014;

: $9 on December 31, 2015;

:$15 on December 31, 2016;

: $6 on December 31, 2017;

:$18 on December 31, 2018.

Answer 7

Chapter 16, Problem 30E

To determine

Stock Appreciation Rights: Excess of market price of the share over the pre established price on the exercise date is called share appreciation. Stock appreciation rights gives an employee the right to receive compensation equal to the appreciation in the share. The accounting of these rights is based on how the company classifies this right: as a liability or as equity.

To prepare: To prepare journal entries for stock appreciation rights and compensation schedule.

Given Information: Pre established price: $30.

SARs: 30,000.

Period is 4 years.

Fair value: $6 per SAR on December 31, 2014;

: $9 on December 31, 2015;

:$15 on December 31, 2016;

: $6 on December 31, 2017;

:$18 on December 31, 2018.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 16 - Prob. 1Q Ch. 16 - 2. Briefly explain why corporations issue...Ch. 16 - 3. Discuss the similarities and the differences...Ch. 16 - 4. Bridgewater Corp. offered holders of its 1,000...Ch. 16 - 5. Explain how the conversion feature of...Ch. 16 - Prob. 6Q Ch. 16 - Prob. 7Q Ch. 16 - Prob. 8Q Ch. 16 - Prob. 9Q Ch. 16 - Prob. 10Q

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