On December 31, 2021, Swifty Company issues 124,000 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 $9 on December 31, 2025. The service period is 4 years, and the exercise period is 7 years.

On December 31, 2021, Swifty Company issues 124,000 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 $9 on December 31, 2025. The service period is 4 years, and the exercise period is 7 years.

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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