The compensation expenses in 2015, 2016 and 2017. Given information: Number of shares granted as SARs is 100,000 Vesting period is 3 years. Pre-established price at the beginning of the year is $20. Fair value of SAR as on December 31, 2015 is $22. Fair value of SAR as on December 31, 2016 is $23. Fair value of SAR as on December 31, 2016 is $21.60.

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Answer 1

Question

Chapter 19, Problem 19.4P

a.

To determine

The compensation expenses in 2015, 2016 and 2017.

Given information:

Number of shares granted as SARs is 100,000

Vesting period is 3 years.

Pre-established price at the beginning of the year is $20.

Fair value of SAR as on December 31, 2015 is $22.

Fair value of SAR as on December 31, 2016 is $23.

Fair value of SAR as on December 31, 2016 is $21.60.

b.

To determine

Journal entry to record the plan.

Given information:

Number of shares granted as SARs is 100,000

Vesting period is 3 years.

Pre-established price at the beginning of the year is $20.

Fair value of SAR as on December 31, 2015 is $22.

Fair value of SAR as on December 31, 2016 is $23.

Fair value of SAR as on December 31, 2016 is $21.60.

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Answer 2

Question

Chapter 19, Problem 19.4P

a.

To determine

The compensation expenses in 2015, 2016 and 2017.

Given information:

Number of shares granted as SARs is 100,000

Vesting period is 3 years.

Pre-established price at the beginning of the year is $20.

Fair value of SAR as on December 31, 2015 is $22.

Fair value of SAR as on December 31, 2016 is $23.

Fair value of SAR as on December 31, 2016 is $21.60.

b.

To determine

Journal entry to record the plan.

Given information:

Number of shares granted as SARs is 100,000

Vesting period is 3 years.

Pre-established price at the beginning of the year is $20.

Fair value of SAR as on December 31, 2015 is $22.

Fair value of SAR as on December 31, 2016 is $23.

Fair value of SAR as on December 31, 2016 is $21.60.

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Answer 3

Question

Chapter 19, Problem 19.4P

a.

To determine

The compensation expenses in 2015, 2016 and 2017.

Given information:

Number of shares granted as SARs is 100,000

Vesting period is 3 years.

Pre-established price at the beginning of the year is $20.

Fair value of SAR as on December 31, 2015 is $22.

Fair value of SAR as on December 31, 2016 is $23.

Fair value of SAR as on December 31, 2016 is $21.60.

b.

To determine

Journal entry to record the plan.

Given information:

Number of shares granted as SARs is 100,000

Vesting period is 3 years.

Pre-established price at the beginning of the year is $20.

Fair value of SAR as on December 31, 2015 is $22.

Fair value of SAR as on December 31, 2016 is $23.

Fair value of SAR as on December 31, 2016 is $21.60.

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Answer 4

Question

Chapter 19, Problem 19.4P

a.

To determine

The compensation expenses in 2015, 2016 and 2017.

Given information:

Number of shares granted as SARs is 100,000

Vesting period is 3 years.

Pre-established price at the beginning of the year is $20.

Fair value of SAR as on December 31, 2015 is $22.

Fair value of SAR as on December 31, 2016 is $23.

Fair value of SAR as on December 31, 2016 is $21.60.

b.

To determine

Journal entry to record the plan.

Given information:

Number of shares granted as SARs is 100,000

Vesting period is 3 years.

Pre-established price at the beginning of the year is $20.

Fair value of SAR as on December 31, 2015 is $22.

Fair value of SAR as on December 31, 2016 is $23.

Fair value of SAR as on December 31, 2016 is $21.60.

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Answer 5

Chapter 19, Problem 19.4P

a.

To determine

The compensation expenses in 2015, 2016 and 2017.

Given information:

Number of shares granted as SARs is 100,000

Vesting period is 3 years.

Pre-established price at the beginning of the year is $20.

Fair value of SAR as on December 31, 2015 is $22.

Fair value of SAR as on December 31, 2016 is $23.

Fair value of SAR as on December 31, 2016 is $21.60.

b.

To determine

Journal entry to record the plan.

Given information:

Number of shares granted as SARs is 100,000

Vesting period is 3 years.

Pre-established price at the beginning of the year is $20.

Fair value of SAR as on December 31, 2015 is $22.

Fair value of SAR as on December 31, 2016 is $23.

Fair value of SAR as on December 31, 2016 is $21.60.

Answer 6

Chapter 19, Problem 19.4P

a.

To determine

The compensation expenses in 2015, 2016 and 2017.

Given information:

Number of shares granted as SARs is 100,000

Vesting period is 3 years.

Pre-established price at the beginning of the year is $20.

Fair value of SAR as on December 31, 2015 is $22.

Fair value of SAR as on December 31, 2016 is $23.

Fair value of SAR as on December 31, 2016 is $21.60.

Answer 7

Chapter 19, Problem 19.4P

a.

To determine

The compensation expenses in 2015, 2016 and 2017.

Given information:

Number of shares granted as SARs is 100,000

Vesting period is 3 years.

Pre-established price at the beginning of the year is $20.

Fair value of SAR as on December 31, 2015 is $22.

Fair value of SAR as on December 31, 2016 is $23.

Fair value of SAR as on December 31, 2016 is $21.60.

Answer 8

b.

To determine

Journal entry to record the plan.

Given information:

Number of shares granted as SARs is 100,000

Vesting period is 3 years.

Pre-established price at the beginning of the year is $20.

Fair value of SAR as on December 31, 2015 is $22.

Fair value of SAR as on December 31, 2016 is $23.

Fair value of SAR as on December 31, 2016 is $21.60.

Answer 9

b.

To determine

Journal entry to record the plan.

Given information:

Number of shares granted as SARs is 100,000

Vesting period is 3 years.

Pre-established price at the beginning of the year is $20.

Fair value of SAR as on December 31, 2015 is $22.

Fair value of SAR as on December 31, 2016 is $23.

Fair value of SAR as on December 31, 2016 is $21.60.

Answer 10

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Answer 11

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Answer 12

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Answer 13

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