Question - On January 1, 2013, Orr Co. established a stock appreciation rights plan for its executives. They could receive cash at any time during the next four years equal to the difference between the market price of the common stock and a pre established price of $17on 400,000 SARs. The market price is as follows: 12/31/13-$22; 12/31/14-$18; 12/31/15-$20; 12/31/16-$21. On December 31, 2015, 70,000 SARs are exercised, and the remaining SARs are exercised on December 31, 2016.
Prepare a schedule that shows the amount of compensation expense for each of the four years starting with 2013.