Xander Company issued 60,000 SARs entitling the holder to receive the difference between the market...
50.1K
Verified Solution
Link Copied!
Question
Accounting
Xander Company issued 60,000 SARs entitling the holder to receive the difference between the market price at the time of exercise and $25. The fair value of each SAR on the date of grant was $7. The vesting period is 3 years. The SARs are exercised in the 5th year when the market price is $72. Which of the following is true?
a. The liability at the time of exercise is 60,000 x (72 25).
b. The company pays upon exercise 60,000 x 25.
c. The company receives at the time of exercise 60,000 x 72.
d. The liability at the end of the first year is 60,000 x 7.
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!
