What amount should be recognized as gain on reversal of share appreciation rights in 2021? *see attached a. 1,600,000 b. 1,200,000 c. 400,000 d. 0
What amount should be recognized as gain on reversal of share appreciation rights in 2021? *see attached a. 1,600,000 b. 1,200,000 c. 400,000 d. 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
What amount should be recognized as gain on reversal of share appreciation rights in 2021?
*see attached
a. 1,600,000
b. 1,200,000
c. 400,000
d. 0
![On Jan. 1, 2020, Rukawa Company granted the chief executive officer
(CEO) 80,000 share appreciation rights for past services. The rights are
exercisable immediately and expire on Dec. 31, 2021.
On exercise, the CEO is entitled to receive cash for the excess of the
share market price on exercise date over the market price on grant
date.
The CEO did not exercise any of the rights in 2020. The CEO exercised
the rights on Dec. 31, 2021 when the market price was Php115.
The market price of the share was Php100 on Jan. 1, 2020 and Php120
on Dec. 31, 2020.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3bac57b6-f32e-49ca-b0ff-b82aa6d14554%2F7c755727-b6c1-4851-8d98-e73080fd6b6d%2F8k9tbjng_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On Jan. 1, 2020, Rukawa Company granted the chief executive officer
(CEO) 80,000 share appreciation rights for past services. The rights are
exercisable immediately and expire on Dec. 31, 2021.
On exercise, the CEO is entitled to receive cash for the excess of the
share market price on exercise date over the market price on grant
date.
The CEO did not exercise any of the rights in 2020. The CEO exercised
the rights on Dec. 31, 2021 when the market price was Php115.
The market price of the share was Php100 on Jan. 1, 2020 and Php120
on Dec. 31, 2020.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education