Question: The pre-established price is $ 50 per share, which is the market value of the shares at January 1, 2015. The vesting period is two

The pre-established price is $ 50 per share, which is the market value of the shares at January 1, 2015. The vesting period is two years. The plan expires on January 1, 2017. Fiar’s closing market price for the years ended December 31, 2015, and 2016 are as follows:
Date Closing Market Price
December 31, 2015……………………….$ 56
December 31, 2016……………………….$ 55
Employees exercise all SARs on January 1, 2017, when the market price is $ 55. What is the compensation expense in 2015 and in 2016? Prepare all journal entries to record the SAR plan. .

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