Problem 5: (Share-based compensation: Share appreciation rights) TINCTURE Company granted 300 share appreciation rights to each of the 500 employees on January 1, 2020. The rights are due to vest on December 31, 2023 with payment being made on December 31, 2023 and expire on December 31, 2024. Only 75% of the awards vested. Share price January 1, 2020 (pre-determined price) December 31, 2020, 2021, and 2022 December 31, 2023 December 31, 2024 150 180 210 190 The share appreciation rights were exercised on December 31, 2024. Requirements: 1. Compute for the compensation expense for: 18. 2020 19. 2022 20. 2023 21. 2024

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Problem 5: (Share-based compensation: Share appreciation rights)
TINCTURE Company granted 300 share appreciation rights to each of the 500 employees on January 1,
2020. The rights are due to vest on December 31, 2023 with payment being made on December 31, 2023
and expire on December 31, 2024. Only 75% of the awards vested.
Share price
January 1, 2020 (pre-determined price)
December 31, 2020, 2021, and 2022
December 31, 2023
150
180
210
December 31, 2024
190
The share appreciation rights were exercised on December 31, 2024.
Requirements:
1. Compute for the compensation expense for:
18. 2020
19. 2022
20. 2023
21. 2024
Transcribed Image Text:Problem 5: (Share-based compensation: Share appreciation rights) TINCTURE Company granted 300 share appreciation rights to each of the 500 employees on January 1, 2020. The rights are due to vest on December 31, 2023 with payment being made on December 31, 2023 and expire on December 31, 2024. Only 75% of the awards vested. Share price January 1, 2020 (pre-determined price) December 31, 2020, 2021, and 2022 December 31, 2023 150 180 210 December 31, 2024 190 The share appreciation rights were exercised on December 31, 2024. Requirements: 1. Compute for the compensation expense for: 18. 2020 19. 2022 20. 2023 21. 2024
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