How much is the salaries expense recognized

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Question - On January 1, 20x1, PLUSH LUXORIOUS Co. granted 1,000 share appreciation rights (SARs) to employees with the condition that the employees remain in service for the next three years. Information on the SARs is shown below:

Date

Number of SARs expected to vest

Fair value of each SAR

Jan. 1. 20x1

1,000

40

Dec. 31, 20x1

900

48

Dec. 31, 20x2

800

60

Dec. 31, 20x3

750

64

All of the 750 SARs that vested were exercised on December 31, 20x3. The intrinsic value (which is equal to the cash paid out) is equal to the fair value of the SARs of #64 on December 31, 20x3.

Required -

1. How much is the salaries expense recognized in 20x1?

2. How much is the accrued liability as of December 31, 20x2?

3. How much is the salaries expense recognized in 20x3?

Reference no: EM133135699

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