Determine what amount should be reported as liability

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Question 1: Thor Co. granted 30,000 share appreciation rights which entitled key employees to receive cash equal to the difference between P20 and the market price of the share on the date each right is exercised. The service period is 2017 through 2020 and the rights are exercisable in 2021. The market price of the share was P25 and P28 on December 31, 2017, and 2018. What amount should be reported as liability under the share appreciation rights on December 31, 2018?

Reference no: EM132560675

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