Reference no: EM132769427
Question - On January 1, 2017, Kristen Company established a share appreciation rights plan for the executives. The plan entitled them to receive cash at any time during the next four the difference between the market price of the ordinary share and a pre-established price of P20 on 60,000 share appreciation rights or SARs. On December 31, 2019, 20,000 SARs are exercised by executives
Market Price
January 1, 2017 25 per share
December 31, 2017 28 per share
December 31, 2018 35 per share
December 31, 2019 30 per share
1. What amount of compensation expense should be recognized for 2017?
2. What amount of compensation expense should be recognized for 2018?
3. What amount should be recognized as accrued liability for share appreciation rights on December 31, 2019?