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On December 31, 2021, Bramble Company issues 151, 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 $10. The fair value of the SARS is estimated to be $5 per SAR on December 31, 2022; $2 on December 31, 2023; $10 on December 31, 2024; and $8 on December 31, 2025. The service period is 4 years, and the exercise period is 7 years. (a) Prepare a schedule that shows the amount of compensation expense allocable to each year affected by the stock - appreciation rights plan. (If the compensation decreases from prior year enter the amount as a negative number in the table e.g. - 25,000 or (25,000).) Date Fair Value Cumulative Compensation Recognizable Percentage Accrued Compensation Accrued to Date Expense 2022 Expense 2023 Expense 2024 Expense 2025 12/31/22 12/31/23 12/31/24 12/31/25

On December 31, 2021, Bramble Company issues 151, 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 $10. The fair value of the SARS is estimated to be $5 per SAR on December 31, 2022; $2 on December 31, 2023; $10 on December 31, 2024; and $8 on December 31, 2025. The service period is 4 years, and the exercise period is 7 years. (a) Prepare a schedule that shows the amount of compensation expense allocable to each year affected by the stock - appreciation rights plan. (If the compensation decreases from prior year enter the amount as a negative number in the table e.g. - 25,000 or (25,000).) Date Fair Value Cumulative Compensation Recognizable Percentage Accrued Compensation Accrued to Date Expense 2022 Expense 2023 Expense 2024 Expense 2025 12/31/22 12/31/23 12/31/24 12/31/25

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On December 31, 2021, Bramble Company issues 151,000 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 $10. The fair value of the SARS is estimated to be $5 per SAR on December 31, 2022; $2 on December 31, 2023; $10 on December 31, 2024; and $8 on December 31, 2025. The service period is 4 years, and the exercise period is 7 years. (a) Prepare a schedule that shows the amount of compensation expense allocable to each year affected by the stock - appreciation rights plan. (If the compensation decreases from prior year enter the amount as a negative number in the table e.g. - 25,000 or (25,000).) Date Fair Value Cumulative Compensation Recognizable Percentage Accrued Compensation Accrued to Date Expense 2022 Expense 2023 Expense 2024 Expense 2025 12/31/22 12/31/23 12/31/24 12/31/25
Transcribed Image Text:On December 31, 2021, Bramble Company issues 151,000 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 $10. The fair value of the SARS is estimated to be $5 per SAR on December 31, 2022; $2 on December 31, 2023; $10 on December 31, 2024; and $8 on December 31, 2025. The service period is 4 years, and the exercise period is 7 years. (a) Prepare a schedule that shows the amount of compensation expense allocable to each year affected by the stock - appreciation rights plan. (If the compensation decreases from prior year enter the amount as a negative number in the table e.g. - 25,000 or (25,000).) Date Fair Value Cumulative Compensation Recognizable Percentage Accrued Compensation Accrued to Date Expense 2022 Expense 2023 Expense 2024 Expense 2025 12/31/22 12/31/23 12/31/24 12/31/25
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