On January 1, Year 1, Salt Lake Corporaton grants stock appreciation rights to its CEO. Under the

Question:

On January 1, Year 1, Salt Lake Corporaton grants stock appreciation rights to its CEO. Under the plan, the CEO will receive cash for the difference between the quoted market price over a $50 option price for 1,000 shares of the company’s on the exercise date. The service period is three years. The fair value per SAR is $15 at the end of Year 1 and $27 at the end of Year 2. Determine the compensation expense for Year 2.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...