Ferraro inc established a stock appreciation rights sar

Reference no: EM13572283

Ferraro, Inc. established a stock appreciation rights (SAR) program on January 1, 2012, which entitles executives to receive cash at the date of exercise for the difference between the market price of the stock and the pre-established price of $25 on 5,420 SARs. The required service period is 2 years. The fair value of the SAR's are determined to be $7 on December 31, 2012, and $14 on December 31, 2013.

Compute Perkins' compensation expense for 2012.

_______

Compute Perkins' compensation expense for 2013.

____________

Reference no: EM13572283

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