Draw a table that calculates and summarizes the expense

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Question - On January 1, 2008, as a form of executive compensation, the Truman Company granted share appreciation rights (SARs) to James Forrestal. These rights entitle Forrestal to receive cash equal to the excess of the quoted market price over a $30 option price for 10,000 shares of the company's common stock on the exercise date. The service period is four years. Forrestal exercises his rights on December 31, 2011. The fair value per SAR was:

12/31/2008: $7.25

12/31/2019: $3.75

12/31/2010: $5.50

12/31/2011: $4.60

The market price of the common stock was $34.60 on December 31, 2011.

Draw a table that calculates and summarizes the expense AND ending liability associated with the SARs for 2008 and 2009.

Prepare the journal entry to record compensation expense for 2008.

Prepare the entry to record compensation expense for 2009.

What would the Truman Company's balance in the SAR Payable account be as of December 31, 2010.

Reference no: EM132626426

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