On January 1, 2020, Dayan Co. granted 100 share appreciation rights to each of its 200 officers, provided that they stay in the company for the next three years. All of the employees remained for the three-year vesting period. The fair value and intrinsic value of the share appreciation rights are as follows (SEE PICTURE BELOW): The intrinsic value represents the actual amount paid to the officers and is debited to compensation expense. Any fair value remeasurement of the SAR payable is adjusted through compensation expense. Exercise of the SAR were as follows: · December 31, 2022: 40 employees · December 31, 2023: 100 employees · December 31, 2024 (end of exercise period): 60 employees What is the balance of the Share Appreciation Rights Payable at the end of the 2022? a. 140,000 b. 160,000 c. 320,000 d. 400,000
On January 1, 2020, Dayan Co. granted 100 share appreciation rights to each of its 200 officers, provided that they stay in the company for the next three years. All of the employees remained for the three-year vesting period. The fair value and intrinsic value of the share appreciation rights are as follows (SEE PICTURE BELOW): The intrinsic value represents the actual amount paid to the officers and is debited to compensation expense. Any fair value remeasurement of the SAR payable is adjusted through compensation expense. Exercise of the SAR were as follows: · December 31, 2022: 40 employees · December 31, 2023: 100 employees · December 31, 2024 (end of exercise period): 60 employees What is the balance of the Share Appreciation Rights Payable at the end of the 2022? a. 140,000 b. 160,000 c. 320,000 d. 400,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2020, Dayan Co. granted 100 share appreciation rights to each of its 200 officers, provided that they stay in the company for the next three years. All of the employees remained for the three-year vesting period. The fair value and intrinsic value of the share appreciation rights are as follows (SEE PICTURE BELOW):
The intrinsic value represents the actual amount paid to the officers and is debited to compensation expense. Any fair value remeasurement of the SAR payable is adjusted through compensation expense. Exercise of the SAR were as follows:
· December 31, 2022: 40 employees
· December 31, 2023: 100 employees
· December 31, 2024 (end of exercise period): 60 employees
What is the balance of the Share Appreciation Rights Payable at the end of the 2022?
The intrinsic value represents the actual amount paid to the officers and is debited to compensation expense. Any fair value remeasurement of the SAR payable is adjusted through compensation expense. Exercise of the SAR were as follows:
· December 31, 2022: 40 employees
· December 31, 2023: 100 employees
· December 31, 2024 (end of exercise period): 60 employees
What is the balance of the Share Appreciation Rights Payable at the end of the 2022?
a. 140,000
b. 160,000
c. 320,000
d. 400,000
Transcribed Image Text:Fair Value
Intrinsic Value
December 31, 2020
15
December 31, 2021
December 31, 2022
December 31, 2023
18
20
15
21
20
December 31, 2024
25
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