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On January 2, 2017, Morey Corp. granted Dean, its president, 20,000 stock appreciation rights for past services. Those rights are exercisable immediately and expire on January 1, 2020.On exercise, Dean is entitled to receive cash for the excess of the stock's market price on the exercise date over the market price on the grant date. Dean did not exercise any of the rights during 2017. The market price of Morey's stock was $30 on January 2, 2017 and $45 on December 31, 2017.As a result of the stock appreciation rights, Morey should recognize compensation expense for 2017 of$300,000.$100,000.$600,000.$0.

User Ilovewt
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Answer:

$300,000.

Step-by-step explanation:

The 2017 compensation expense for these stock-appreciation rights equals: (number of shares) x (ending market price - grant-date market price) = 20,000($45 - $30) = $300,000.

User JayV
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