Reference no: EM132560679
On January 1, 2017, Star Lord Co offered the top management share appreciation rights with the following terms:
Predetermined priceP100 per share
No. of shares50,000 shares
Service period3 years
Exercise dateJanuary 1, 2020
Question 1: The share appreciation rights are exercised on January 1, 2020. The quoted prices per share are 100, 124, 151, and 151 on January 1, 2017, December 31, 2017, December 31, 2018 and December 31, 2019, respectively. What is the compensation expense for 2019 as a result of the share appreciation rights?