What abc company should record compensation expense of

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Reference no: EM132945145

On January 1, 2021, ABC Company offered its chief executive officer, stock appreciation rights with the following terms:

Predetermined price P100 per share
Number of shares 10,000 shares
Service period - 3 years 2021,2022and 2023
Exercise date December 31, 2023

The stock appreciation rights are exercised on December 31, 2023. The quoted price of the ABC stock is as follows: P118 on December 31, 2021, P112 on December 31, 2022, and P124 on December 31, 2023.

Problem 1: ABC Company should record 2023 compensation expense at

a. 160,000
b. 60,000
c. 80,000
d. 20,000

Reference no: EM132945145

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