1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
pshichka [43]
2 years ago
6

On January 1, 2020, Korsak, Inc. established a stock appreciation rights plan for its executives. It entitled them to receive ca

sh at any time during the next four years for the difference between the market price of its common stock and a pre-established price of $20 on 120,000 SARs. Current market prices of the stock are as follows: January 1, 2020 $35 per share December 31, 2020 38 per share December 31, 2021 30 per share December 31, 2022 33 per share Compensation expense relating to the plan is to be recorded over a four-year period beginning January 1, 2020. *75. What amount of compensation expense should Korsak recognize for the year ended December 31, 2020
Business
1 answer:
kykrilka [37]2 years ago
8 0

Answer:

$570,000

Explanation:

Missing question: <em>"On December 31, 2022,50,000 SARs are exercised by executives. What amount of compensation expense should Korsak recognize for the year ended December 31, 2020"</em>

Amount of compensation expense = [(33-20)*120,000*3/4] - [(30-20)*120,000*2/4]

Amount of compensation expense = [13*120,000*3/4] - [10*120,000*2/4]

Amount of compensation expense = 1,170,000 - 600,000

Amount of compensation expense = $570,000

So. the amount of compensation expense that Korsak should recognize for the year ended December 31, 2020 is $570,000.

You might be interested in
The failure to properly record an adjusting entry to accrue an expense will result in an:
erica [24]

The failure to properly record an adjusting entry to accrue an expense will result in an understatement of expenses and an understatement of liabilities. This is further explained below.

<h3>What are expenses?</h3>

Generally, expenses are simply defined as what it would take or what it would cost to do anything.

In conclusion, Incorrectly recording an accrual adjustment entry will result in a misstatement of both costs and liabilities.

Read more about expenses

brainly.com/question/17136150

#SPJ12

5 0
2 years ago
Dividing a stock's current price per share by the issuing company's earnings per share results in
andreev551 [17]
Price per share / Earnings per share = Price-Earnings Ratio
Price-Earnings Ratio shows how much the investors are willing to pay per earnings for the company. For example, if the P/E Ratio is 15 suggests that the investors of a stock is willing to pay $15 per $1 of earnings of the company may produce over the year.
5 0
3 years ago
Read 2 more answers
This is not an effective use of wikis.
Cerrena [4.2K]
The answer should be B) Online Conversation.

Why is it B) U may ask? Its B) because Wikipedia is a site with false answers because ANYBODY, I mean ANYBODY, can just edit it themselves with probably true information, or even MORE likely false because anybody can change the stuff on there.
5 0
3 years ago
Read 2 more answers
Whirly Corporation’s contribution format income statement for the most recent month is shown below: Total Per Unit Sales (8,000
yarga [219]

Answer:

An increase in sale for 90 units, will increase the net income for 1$,170

Explanation:

<em>We are not given with any information of additional cost or special price for this units, so we use the current values.</em>

So we simply multiply the contribution per unit by the increase in sale.

Contribution Margin  x Δ sales = Δ income

13 x 90 = 1,170

Each unit contributes with 13 additional income, there are 90 additional units

Total income added 1,170

8 0
3 years ago
Managing quality helps build successful strategies of A. ​differentiation, low cost and service. B. ​differentiation, time and r
Liono4ka [1.6K]

Managing quality helps build successful strategies of "​differentiation, low cost and response".

<u>Answer:</u> Option C

<u>Explanation:</u>

The expression of supervising all operations and activities necessary to maintain the rate of competence required, thus understood as "Quality management". It involves defining a performance policy, establishing and enforcing quality scheduling and expectation, as well as quality control and enhancing quality.

In order to attract market, launch of unique product is necessary with pocket friendly price and good quality too. When quality is managed more according to the market need than the owners capability of finance, then only growth of firm is possible, thus quality of product should not be compromised.

5 0
3 years ago
Other questions:
  • Missoula Inc. reported the following selected financial statement data: Dec 31, 2020 Dec 31, 2021 Cash $ 47,000 $ 57,500 Account
    8·1 answer
  • Product indicators of sensitivity to price include all of the following EXCEPT:
    9·2 answers
  • You decide to work in japan for the next 10​ years, accumulate some​ savings, then move back to the united states and convert yo
    8·1 answer
  • The Cash T-account of Rainbow, Inc. has a beginning balance of $52,000. During the year, $244,000 was debited and $241,000 was c
    9·1 answer
  • the income effect of a price change refers to the impact of a change in a) income on the price of a good b) demand when the inco
    5·1 answer
  • ALL ABSURD OR INCORRECT ANSWERS WILL BE REPORTED!!!!
    7·2 answers
  • Like a good economist, you calculated the opportunity cost of getting your college degree. Suppose that at your university, you
    12·1 answer
  • A company started the year with $1,500 of supplies on hand. During the year the company purchased additional supplies of $800 an
    13·1 answer
  • Which inventory method results in the highest net income during periods of falling prices?
    11·1 answer
  • A widower owned a residence in fee simple absolute. He contracted to sell it to a couple. The couple did not record the contract
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!