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How much compensation expense should loud record

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Question - On January 1 year 1 Loud Corp. Granted Mort, its president, 10,000 stock appreciation rights expiring on January 3, Year 4. Upon exercise, Mort may receive cash for the excess of market price of the stock on that date over the market price on the grant date, and the service period runs for two years

Date December 31 year 1 - $15

FV December 31, Year 2 $10

How much compensation expense should loud record in Year 1 and year 2? Record the journal entries for the year 1.

Reference no: EM133150745

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