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, 2022, is $7. Fair value of SAR as on December 31, 2023, is $13. Fair value of SAR as on December 31, 2024, is $11.

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Chapter 19, Problem 19.6E

a.

To determine

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, 2022, is $7.

Fair value of SAR as on December 31, 2023, is $13.

Fair value of SAR as on December 31, 2024, 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, 2022, is $7.

Fair value of SAR as on December 31, 2023, is $13.

Fair value of SAR as on December 31, 2024, is $11.

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