Chapter 19, Problem 19.10BE

To determine

Introduction

A stock appreciation right (SARs) is a type of compensation, given to employees in order to encourage the efforts that they are putting into the success of the organization. It provides the right to the employees to receive an amount that is equal to the appreciated amount of stock of the company from the award date to the exercise date.

To record:

The journal entries of SARs Plan, when the stock appreciation rights are settled for stock.