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Problem #22: Accounting for Stock Appreciation Rights (SAR's) Clark Industries, Inc. establishes a...

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Accounting

Problem #22: Accounting for Stock Appreciation Rights (SAR's)
Clark Industries, Inc. establishes a share-appreciation rights plan on January 1,2018. The plan entitles executives to
receive cash at the date of exercise for the difference between the market price of the stock and the pre-established
price of $60 on 10,000 SARs. The service period runs for two years (2018-2021).
The value of the SAR's at the end of each of year (2018-2020) are as follows:
Requirement: Record the journal entries for the three-year period (2018-2020) to record compensation expense
relative to the SAR's (Note: Three Journal entries required)
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