PROBLEM 2

How much is the compensation expense for 2022? * (1 Point) On January 1, 2020, ABC Co. granted 100 share appreciation rights to each of its 200 officers, provided that they stay in the company for the next three years. All of the employees remained for the three-year vesting period. The fair value and intrinsic value of the share appreciation rights are as follows: Intrinsic Value December 31, 2020 December 31, 2021 December 31, 2022 December 31, 2023 December 31, 2024 Fair Value 15 18 20 21 15 20 25 The intrinsic value represents the actual amount paid to the officers and is debited to compensation expense. Any fair value remeasurement of the SAR payable is adjusted through compensation expense. Exercise of the SAR were as follows: . December 31, 2022: 40 employees December 31, 2023: 100 employees December 31, 2024 (end of exercise period): 60 employees O P 140,000 P 400,000 P 320,000 P 160,000