A.

B. Prepare the entry at December 31, 2017, to record compensation expense, if any, in 2017.

C. Prepare the entry on December 31, 2017, assuming that all 170,000 SARs are exercised.

Exercise 16-29 On December 31, 2013, Tamarisk Company issues 170,000 stock-appreciation rights to its officers entitling them to receive cash for the difference between the market price of its stock and a pre-established price of $12. The fair value of the SARs is estimated to be $5 per SAR on December 31, 2014; $2 on December 31, 2015; $12 on December 31, 2016; and $11 on December 31, 2017. The service period is 4 years, and the exercise period is 7 years. Prepare a schedule that shows the amount of compensation expense allocable to each year affected by the stock-appreciation rights plan. (If the compensation decreases from prior year enter the amount as a negative number in the table e.g. -25,000 or (25,00o).) Percentage Compensation Expense 2014 Expense 2015 Expense 2016 Expense 2017 Date Fair Value Cumulative Compensation Recognizable Accrued Accrued to Date 12/31/14 s 12/31/15 12/31/16 12/31/17