Peanut Butter Limited established a share appreciation rights program that entitled its new president, Amy...
60.1K
Verified Solution
Link Copied!
Question
Accounting
Peanut Butter Limited established a share appreciation rights program that entitled its new president, Amy Chua, to receive cash for the difference between the shares' fair value and a pre-established price of $32 (also fair value on December 31, 2019), on 45,000 SARS The date of grant is December 31, 2019, and the required employment (service) period is four years The president exercised all of the SARS on December 31, 2024 The shares' fair value fluctuated as follows: December 31, 2020, $36 December 31, 2021, $39 December 31, 2022, $45, December 31, 2023, $36, and December 31, 2024, $48. The company recognizes the SARS in its financial statements. Assume that Peanut Butter follows ASPE Required: a. Prepare a schedule of compensation expense pertaining to the 45,000 SARs granted to Amy Chua (6 Marks) b. Prepare the journal entry for compensation expense in 2020, 2023 and 2024 relative to the 45,000 SARs. (5 Marks) c. Prepare the journal entry for SARs exercised in 2024 (2 Marks)
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: Zin AI - Your personal assistant for all your inquiries!
