Accounting

Anonymous
timer Asked: Dec 21st, 2017

Question description

Exercise 16-29

On December 31, 2013, Coronado Company issues 159,000 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 $12. The fair value of the SARs is estimated to be $4 per SAR on December 31, 2014; $1 on December 31, 2015; $12 on December 31, 2016; and $11 on December 31, 2017. 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 e.g. -25,000 or (25,000).)

Date

Fair Value

Cumulative Compensation Recognizable

Percentage
Accrued

Compensation
Accrued to Date

Expense
2014

Expense
2015

Expense
2016

Expense
2017

12/31/14

$

$

%

$

$

$

$

$

12/31/15

%

12/31/16

%

12/31/17

%

$


Prepare the entry at December 31, 2017, to record compensation expense, if any, in 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation

Debit

Credit


Prepare the entry on December 31, 2017, assuming that all 159,000 SARs are exercised. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation

Debit

Credit

Tutor Answer

(Top Tutor) Studypool Tutor
School: New York University
Studypool has helped 1,244,100 students
flag Report DMCA
Similar Questions
Hot Questions
Related Tags

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors