Xander Company issued 60,000 SARSentitling the holder to receive the differencebetween the market price at the time ofexercise and $25. The fair value of each SARon the date of grant was $7. The vestingperiod is 3 years. The SARS are exercised inthe 5tn year when the market price is $72.Which of the following is true?a. The liability at the time of exercise is 60,000 x(72 – 25).5. The company pays upon exercise 60,000 x25.c. The company receives at the time of exercise60,000 х 72.d. The liability at the end of the first year is60,000 x 7.

Share capital: It is the capital that is brought by the company from the issue of common stock and…

Xander Company issued 60,000 SARS entitling the holder to receive the differenc between the market price at the time of exercise and $25. The fair value of each SA on the date of grant was $7. The vesting period is 3 years. The SARS are exercised in 5th Which of the following is true? the year when the market price is $72. The liahility at tbe time of oxercise is 60 00

Xander Company issued 60,000 SARS entitling the holder to receive the differenc between the market price at the time of exercise and $25. The fair value of each SA on the date of grant was $7. The vesting period is 3 years. The SARS are exercised in 5th Which of the following is true? the year when the market price is $72. The liahility at tbe time of oxercise is 60 00

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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