Compute the compensation expense

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Question - C&H Inc. established a share appreciation rights (SARs) program on January 1, 2021, which entitles executives to receive cash at the date of exercise for the difference between the shares' fair value and the pre-established price of $15 on 4,000 SARs. The required service period is two years. The shares' fair value is $18 per share on December 31, 2021 and $20 per share on December 31, 2022. Compute the compensation expense for 2022 assuming C&H follows ASPE?

A. $14,000

B. $10,000

C. $20,000

D. $6,000

Reference no: EM132487361

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