Reference no: EM133051590
Question - On January 1, 2021, BLACK WIDOW Company offered its top management share appreciation right with the following terms:
Predetermined price P100 per share Service period 3 years
Number of shares 50,000 shares Exercise date January 1, 2024
The share appreciation right is to be exercised on January 1, 2024. The quoted prices per share are P100, 124, 151 and 151 on January 1. 2021. December 31, 2021, December 31, 2022, December 31, 2023, respectively.
Required - What amount should BLACK WIDOW charge to compensation expense for the year December 31, 2023 as a result of the share appreciation right?