题目
Test:Midterm 2 Problems
单项选择题
Part 1On January 1, 2021, Cable Corporation issues 4,0004,000 stockminus−appreciation rights to its key executives. The terms of the plan state that the holders of the rights will receive a cash payment equal to the difference between the market price of the stock on the date of exercise and the preminus−established price of $ 10$10 per share. There is a threeminus−year vesting period and the rights may be exercised on January 1, 2024. The rights expire on January 1, 2026. The closing market prices follow:December 31, 2021 $ 13$13 per shareDecember 31, 2022 $ 16$16 per shareDecember 31, 2023 $ 15$15 per shareWhat is the appropriate journal entry on December 31, 2022? (Do not round any intermediate calculations. Round your final answer to the nearest dollar.) Part 1 A. [table] Compensation Expense | 52,00052,000 | Obligation under SAR Plan | | 52,00052,000 [/table] B. [table] Compensation Expense | 1,2001,200 | APIC minus− SAR | | 1,2001,200 [/table] C. [table] Compensation Expense | 12,00012,000 | Obligation under SAR Plan | | 12,00012,000 [/table] D. [table] Obligation under SAR Plan | 4,0004,000 | Deferred Compensation | | 4,0004,000 [/table]
选项
A.A. Compensation Expense 52,000 Obligation under SAR Plan 52,000
B.B. Compensation Expense 1,200 APIC minus SAR 1,200
C.C. Compensation Expense 12,000 Obligation under SAR Plan 12,000
D.D. Obligation under SAR Plan 4,000 Deferred Compensation 4,000
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思路分析
The scenario presents a stock‑appreciation right (SAR) plan with 4,000 SARs that vest over three years and are exercisable beginning January 1, 2024. The obligation is settled in cash as the difference between market price at exercise and the pre‑established price of $10 per share. For the accounting, the company recognizes compensation expense over the vesting period based on the cumulative grant‑date fair value of the SARs (or, equivalently, the cumulative intrinsic value at each measurement date), adjusting for changes in the market price and for estimated forfeitures each perio......Login to view full explanation登录即可查看完整答案
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