The value of compensation expense of the company. Giveninformation: Number of shares granted as SARs is 200,000. Vesting period is 3 years. Pre-established price at the beginning of the year is $55. Fair value of SAR as on December 31, 2018 is $7. Fair value of SAR as on December 31, 2019 is $13. Fair value of SAR as on December 31, 2020 is $11.

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Answer 1

Question

Chapter 19, Problem 19.6E

a.

To determine

The value of compensation expense of the company.

Giveninformation:

Number of shares granted as SARs is 200,000.

Vesting period is 3 years.

Pre-established price at the beginning of the year is $55.

Fair value of SAR as on December 31, 2018 is $7.

Fair value of SAR as on December 31, 2019 is $13.

Fair value of SAR as on December 31, 2020 is $11.

b.

To determine

To prepare: The journal entries of the value of compensation expense of the company.

Given information:

Number of shares granted as SARs is 200,000

Vesting period is 3 years.

Pre-established price at the beginning of the year is $55.

Fair value of SAR as on December 31, 2018 is $7.

Fair value of SAR as on December 31, 2019 is $13.

Fair value of SAR as on December 31, 2020 is $11.

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Answer 2

Question

Chapter 19, Problem 19.6E

a.

To determine

The value of compensation expense of the company.

Giveninformation:

Number of shares granted as SARs is 200,000.

Vesting period is 3 years.

Pre-established price at the beginning of the year is $55.

Fair value of SAR as on December 31, 2018 is $7.

Fair value of SAR as on December 31, 2019 is $13.

Fair value of SAR as on December 31, 2020 is $11.

b.

To determine

To prepare: The journal entries of the value of compensation expense of the company.

Given information:

Number of shares granted as SARs is 200,000

Vesting period is 3 years.

Pre-established price at the beginning of the year is $55.

Fair value of SAR as on December 31, 2018 is $7.

Fair value of SAR as on December 31, 2019 is $13.

Fair value of SAR as on December 31, 2020 is $11.

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Answer 3

Question

Chapter 19, Problem 19.6E

a.

To determine

The value of compensation expense of the company.

Giveninformation:

Number of shares granted as SARs is 200,000.

Vesting period is 3 years.

Pre-established price at the beginning of the year is $55.

Fair value of SAR as on December 31, 2018 is $7.

Fair value of SAR as on December 31, 2019 is $13.

Fair value of SAR as on December 31, 2020 is $11.

b.

To determine

To prepare: The journal entries of the value of compensation expense of the company.

Given information:

Number of shares granted as SARs is 200,000

Vesting period is 3 years.

Pre-established price at the beginning of the year is $55.

Fair value of SAR as on December 31, 2018 is $7.

Fair value of SAR as on December 31, 2019 is $13.

Fair value of SAR as on December 31, 2020 is $11.

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Answer 4

Question

Chapter 19, Problem 19.6E

a.

To determine

The value of compensation expense of the company.

Giveninformation:

Number of shares granted as SARs is 200,000.

Vesting period is 3 years.

Pre-established price at the beginning of the year is $55.

Fair value of SAR as on December 31, 2018 is $7.

Fair value of SAR as on December 31, 2019 is $13.

Fair value of SAR as on December 31, 2020 is $11.

b.

To determine

To prepare: The journal entries of the value of compensation expense of the company.

Given information:

Number of shares granted as SARs is 200,000

Vesting period is 3 years.

Pre-established price at the beginning of the year is $55.

Fair value of SAR as on December 31, 2018 is $7.

Fair value of SAR as on December 31, 2019 is $13.

Fair value of SAR as on December 31, 2020 is $11.

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Answer 5

Chapter 19, Problem 19.6E

a.

To determine

The value of compensation expense of the company.

Giveninformation:

Number of shares granted as SARs is 200,000.

Vesting period is 3 years.

Pre-established price at the beginning of the year is $55.

Fair value of SAR as on December 31, 2018 is $7.

Fair value of SAR as on December 31, 2019 is $13.

Fair value of SAR as on December 31, 2020 is $11.

b.

To determine

To prepare: The journal entries of the value of compensation expense of the company.

Given information:

Number of shares granted as SARs is 200,000

Vesting period is 3 years.

Pre-established price at the beginning of the year is $55.

Fair value of SAR as on December 31, 2018 is $7.

Fair value of SAR as on December 31, 2019 is $13.

Fair value of SAR as on December 31, 2020 is $11.

Answer 6

Chapter 19, Problem 19.6E

a.

To determine

The value of compensation expense of the company.

Giveninformation:

Number of shares granted as SARs is 200,000.

Vesting period is 3 years.

Pre-established price at the beginning of the year is $55.

Fair value of SAR as on December 31, 2018 is $7.

Fair value of SAR as on December 31, 2019 is $13.

Fair value of SAR as on December 31, 2020 is $11.

Answer 7

Chapter 19, Problem 19.6E

a.

To determine

The value of compensation expense of the company.

Giveninformation:

Number of shares granted as SARs is 200,000.

Vesting period is 3 years.

Pre-established price at the beginning of the year is $55.

Fair value of SAR as on December 31, 2018 is $7.

Fair value of SAR as on December 31, 2019 is $13.

Fair value of SAR as on December 31, 2020 is $11.

Answer 8

b.

To determine

To prepare: The journal entries of the value of compensation expense of the company.

Given information:

Number of shares granted as SARs is 200,000

Vesting period is 3 years.

Pre-established price at the beginning of the year is $55.

Fair value of SAR as on December 31, 2018 is $7.

Fair value of SAR as on December 31, 2019 is $13.

Fair value of SAR as on December 31, 2020 is $11.

Answer 9

b.

To determine

To prepare: The journal entries of the value of compensation expense of the company.

Given information:

Number of shares granted as SARs is 200,000

Vesting period is 3 years.

Pre-established price at the beginning of the year is $55.

Fair value of SAR as on December 31, 2018 is $7.

Fair value of SAR as on December 31, 2019 is $13.

Fair value of SAR as on December 31, 2020 is $11.

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 19 - What is the allocation period used to expense...Ch. 19 - How do companies account for stock-based...Ch. 19 - Do companies with equity-based compensation plans...Ch. 19 - When accounting for employee stock options, will a...Ch. 19 - Prob. 19.5Q Ch. 19 - Prob. 19.6Q Ch. 19 - Prob. 19.7Q Ch. 19 - Prob. 19.8Q Ch. 19 - Prob. 19.9Q Ch. 19 - Prob. 19.10Q

Solution Summary: The author calculates the value of compensation expense of the company, based on the number of shares granted as SARs.

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