On January 1, 2020, Korsak, Inc. established a stock appreciation rights plan for its executive officers. It
Question:
On January 1, 2020, Korsak, Inc. established a stock appreciation rights plan for its executive officers. It entitled them to receive cash at any time during the next four years for the difference between the market price of their common shares and a preset price of $20 at SAR 120,000. The current market prices of the shares are as follows:
January 1, 2020 $35 per share
December 31, 2020 38 per share
December 31, 2021 30 per share
December 31, 2022 33 per share
Plan-related compensation expense will be recorded over a four-year period beginning January 1, 2020.
As of December 31, 2022, 50,000 SARs are exercised by executives. What amount of compensation expense must Korsak recognize for the year ended December 31, 2022?
South Western Federal Taxation 2015
ISBN: 9781305310810
38th Edition
Authors: William H. Hoffman, William A. Raabe, David M. Maloney, James C. Young