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Fiar Company started a share appreciation plan on January 1,

Fiar Company started a share appreciation plan on January 1, 2022, when it granted 100,000 rights to

Question:

Fiar Company started a share appreciation plan on January 1, 2022, when it granted 100,000 rights to its executives. The vesting period is 3 years. The rights are settled for cash. The plan expires on January 1, 2025. The SARs fair value for the years ended December 31, 2022, through 2024 are as follows:

All SARs are exercised on January 1, 2025, when the fair value is $1.

Required

a. What is the compensation expense in 2022, 2023, and 2024?

b. Prepare the journal entries to record the plan.

Transcribed Image Text:

Date December 31, 2022 December 31, 2023 December 31, 2024 January 1, 2025 Closing Market Price $2.00 3.00 1.60 1.00

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a The compensation expense is 66667 in 2022 133333 in 20...View the full answer

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Related Book For answer-question

Intermediate Accounting

ISBN: 9780136946694

3rd Edition

Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella

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Question Posted: Jun 25, 2023 05:26 AM

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