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  3. on december 31, 2021, blue company issues 112,000

On December 31, 2021, Blue Company issues 112,000 stock-appreciation rights to its officers entitling them...

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On December 31, 2021, Blue Company issues 112,000 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 \$10. The fair value of the SARs is estimated to be $4 per SAR on December 31, 2022; $1 on December 31, 2023; $10 on December 31, 2024; and $8 on December 31. 2025. 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 es. 25,000 or (25,000) ) Ulocable to each year affected by the stock-appreciation rights plan. (If the compensotion decreases from priar year enter the crnount as a negative number in the table es. 25,000or(25,000) ) Expense 2022 Expense 2023 Expense 2024 Expense %5 3 112000 5 I 5 1 2025 I s (a) Your answer is partially correct. Prepare a schedule that shows the amount of compensation expense allocable to each year affected by the stock-appreciation rights plan. (uf the compensation decreases from pri

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