Calculate the fair value of the sar


Ferraro, Inc. established a stock appreciation rights (SAR) program on January 1, 2012, which 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 $20 on 5,120 SARs. The required service period is 2 years. The fair value of the SAR's are determined to be $2 on December 31, 2012, and $9 on December 31, 2013.

  1. Compute Perkins' compensation expense for 2012.
  2. Compute Perkins' compensation expense for 2013.

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Calculate the fair value of the sar
Reference No:- TGS0675852

Expected delivery within 24 Hours