Solution-Prepare a schedule that shows the amount of

Prepare a schedule that shows the amount of compensation

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Reference no: EM131767787

(Stock Appreciation Rights) On December 31, 2012, SuperTex Company issues 250,000 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 $50. The market price fluctuates as follows: 12/31/13-$51; 12/31/14-$48; 12/31/15-$56; 12/31/16-$54. The service period is 4 years and the exercise period is 7 years.

Instructions

(a) Prepare a schedule that shows the amount of compensation expense allowable to each year affected by the stock appreciation rights plan.

(b) Prepare the entry at December 31, 2016, to record compensation expense, if any, in 2016. (c) Prepare the entry on December 31, 2016, assuming that all 250,000 SARs are exercised.

Reference no: EM131767787

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Prepare a schedule that shows the amount of compensation

Reference no: EM131767787

Reference no: EM131767787

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