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 Date December 31, 2022 December 31, 2023 December 31, 2024 January 1, 2025 Closing Market Price $2 00 3 00 1 60 1 00

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.

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:

Date December 31, 2022 December 31, 2023 December 31, 2024 January 1,

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.

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

Step by Step Solution

★★★★★

3.33 Rating (159 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

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

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Intermediate Accounting Questions!

You will be creating a fictitious company whose only presence is in the United States (domestic entity and domestic sales only). As you put this company together, you will apply what you have learned...

Fiar Company started a share appreciation plan on January 1, 2015, when it granted 100,000 rights to its executives. The pre-established price is $ 20 per share, which is the market value of the...

Fiar Company started a share appreciation plan on January 1, 2018, when it granted 100,000 rights to its executives. The vesting period is 3 years. The rights are settled for cash. The plan expires...

eGear Company started a share appreciation plan on January 1, 2022, when it granted 200,000 rights to its executives. The vesting period is 2 years. The plan expires on January 1, 2024. The fair...

Using the information from BE19-9, now assume that the stock appreciation rights are settled for stock. Prepare the journal entries to record the SAR plan. The par value of common stock is $1 per...

Togo Incorporation started a share appreciation plan on January 1, 2022, when it granted 50,000 rights to its executives. The vesting period is 2 years. The stock appreciation rights are settled for...

Bo Company started a share appreciation plan on Jan 1, 2022, when it granted 204,000 rights to its executives. The vesting period is 2 years. The plan expires on Jan, 2024. The fair vale of Bo's SARs...

eGear Company started a share appreciation plan on January 1, 2018, when it granted 200,000 rights to its executives. The vesting period is 2 years. The plan expires on January 1, 2020. The fair...

Macer Company started a share appreciation plan on January 1, 2018, when it granted 111,000 rights to its executives. The vesting period is 3 years. The rights are settled for cash. The plan expires...

Name and describe the types of consumer promotions.

A steam turbine has the inlet conditions of 5 MPa, 500oC and an exit pressure of 12 kPa. Assuming the atmospheric conditions to be 100 kPa and 25oC, plot how the exegetic efficiency of the turbine...