Xander Company issued 60,000 SARS entitling the holder to receive the difference between the market price at the time of exercise and $25. The fair value of each SAR on the date of grant was $7. The vesting period is 3 years. The SARS are exercised in the 5th year when the market price is $72. Which of the following is true? The liability at the time of exercise is 60,000 x (72 – 25). -. The company pays upon exercise 60,000 x 25. The company receives at the time of exercise 60,000 x 72. |. The liability at the end of the first year is 60,000 х 7.
Xander Company issued 60,000 SARS entitling the holder to receive the difference between the market price at the time of exercise and $25. The fair value of each SAR on the date of grant was $7. The vesting period is 3 years. The SARS are exercised in the 5th year when the market price is $72. Which of the following is true? The liability at the time of exercise is 60,000 x (72 – 25). -. The company pays upon exercise 60,000 x 25. The company receives at the time of exercise 60,000 x 72. |. The liability at the end of the first year is 60,000 х 7.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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