Perkins, Inc. established a stock appreciation rights (SARs) program on January 1, 2011, which entitles executives to receive cash at the date of exercise for the difference between the shares’ market price and the pre-established price of $20 on 5,400 SARs. The required service period is two years. The shares’ fair value is $22 per share on December 31, 2011, and $34 per share on December 31, 2012. The SARs are exercised on January 1, 2013. Calculate Perkins’ compensation expense for 2011 and 2012 assuming it complies with ASPE.
Answer to relevant QuestionsExplain what performance-type plans are and how they differ from other types of compensatory plans. Francine Limited was incorporated with a share capital consisting of 100,000 common shares. In January 2011, it issued 20,000 mandatorily convertible preferred shares. The terms of the prospectus for the issuance of the pre ...Assume the same information as in BE17-16 except that the put options allow the holder to sell Glavin's shares to Glavin at $11 each. How should these options be treated for purposes of the diluted EPS calculation? On June 1, 2010, Mohawk Corp. and Shortreed Limited merged to form Livingston Inc. A total of 800,000 shares were issued to complete the merger. The new corporation uses the calendar year as its fiscal year. On April 1, ...Voisin Inc. had 210,000 common shares outstanding on December 31, 2011. During 2012, the company issued 8,000 shares on May 1 and retired 14,000 shares on October 31. For 2012, the company reported net income of $229,690 ...
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