On December 31, 2016, Ayayai Company issues 118,000 stock-appreciation rights to its officers entitling them...

90.2K

Verified Solution

Question

Accounting

imageOn December 31, 2016, Ayayai Company issues 118,000 stock-appreciation rights to its officers entitling them to receive cash for the difference between the market price of its stock and a pre-established price of $11. The fair value of the SARs is estimated to be $5 per SAR on December 31, 2017; $2 on December 31, 2018; $11 on December 31, 2019; and $9 on December 31, 2020. The service period is 4 years, and the exercise period is 7 years.

Exercise 16-29 On December 31, 2016. Avayal Company issues 119.Dud Stock-appreciat an rights to its officers entitling them to receive cash for the difference between the market price of its stock and a pre-established price af $11. The fair value of the SARS is estimated to be $5 per SAR on December 31, 2017; $2 on December 31, 2018; 511 on December 31, 2019, and $9 on December 31, 2020. The service period is 4 years, and the exercise period is 7 years. Prepare a schedule that shows the amount of compensation expense allocable to each year affected by the stock-appreciation rights plan. (If the compensation decreases from prior year enter the amount as a negative number in the table e.g. -25,000 or (25,000).) Expense Date Fair Value Cumulative Compensation Recognizable Percentage Accrued Compensation Accrued to Date Expense 2017 Expense 2019 Expense 2020 12/31/17 $ 12/31/18 12/31/19 12/31/20 SHOW LIST OF ACCOUNTS LINK TO TEXT Prepare the entry al December 31, 2020, lo record comperselior expense, if any, in 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account tities and enter for the amounts.) Account Titles and Explanation Debit Credit LINK TO TEXT Prepare the entry on December 31, 2020, assuming that all 118,000 SARS are exercised. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter o for the amounts.) Account Titles and Explanation Debit Credit Click if you would like to Show Work for this question: Open Shaw Work SHOW LEST OF ACCOUNTS LINK TO TEXT

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students