entity granted a share appreciation right to the Business development manager of the company on January 1, 2019. After a three-year service period, the employee is entitled to receive cash equal to the appreciation in share price over the market value or predetermined price on January 1, 2019. The share appreciation right had the following terms:Service period – January 1, 2019 to December 31, 2021;Number of shares – 30,000 shares;Exercise date – January 1, 2022.Further, the quoted prices of the entity’s share are: January 1, 2019 – 200. December 31, 2019 –
An entity granted a share appreciation right to the Business development manager of the company on January 1, 2019. After a three-year service period, the employee is entitled to receive cash equal to the appreciation in share price over the market value or predetermined price on January 1, 2019. The share appreciation right had the following terms:Service period – January 1, 2019 to December 31, 2021;Number of shares – 30,000 shares;Exercise date – January 1, 2022.Further, the quoted prices of the entity’s share are: January 1, 2019 – 200. December 31, 2019 – 205. December 31, 2020 – 215 and December 31, 2021 – 230
Using the same information above, what amount should be reported as compensation expense for 2020? *
a.450,000
b.150,000
c.100,000
d.50,000
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