granted 1,000 share appreciation rights (SARS) to employees with the condition that the employees remain in service for the next three years. Information on the SARS is shown below: Date N. of SARS expected to vest Fair value of each SAR Jan. 1. 20x1 Dec. 31, 20x1 Deс. 31, 20x2 Dес. 31, 20х3 1,000 20 900 24 800 30 750 32 All of the 750 SARS that vested were exercised on December 31, 20x3. The intrinsic value (which is equal to the cash paid out) is equal to the fair value of the SARS of P32 on December 31, 20x3. Requirement: Provide all the necessary journal entries.
granted 1,000 share appreciation rights (SARS) to employees with the condition that the employees remain in service for the next three years. Information on the SARS is shown below: Date N. of SARS expected to vest Fair value of each SAR Jan. 1. 20x1 Dec. 31, 20x1 Deс. 31, 20x2 Dес. 31, 20х3 1,000 20 900 24 800 30 750 32 All of the 750 SARS that vested were exercised on December 31, 20x3. The intrinsic value (which is equal to the cash paid out) is equal to the fair value of the SARS of P32 on December 31, 20x3. Requirement: Provide all the necessary journal entries.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:On January 1, 20x1, TORMENT AGONY Co. granted 1,000 share
appreciation rights (SARS) to employees with the condition that
the employees remain in service for the next three years.
Information on the SARS is shown below:
Date
N. of SARS expected to vest Fair value of each SAR
Jan. 1. 20x1
Dec. 31, 20x1
Dec. 31, 20x2
Dec. 31, 20х3
1,000
20
900
24
800
30
750
32
All of the 750 SARS that vested were exercised on December 31,
20x3. The intrinsic value (which is equal to the cash paid out) is
equal to the fair value of the SARS of P32 on December 31, 20x3.
Requirement: Provide all the necessary journal entries.
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