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Business, 21.03.2020 08:08 ameera1973

Ferraro, Inc. established a stock-appreciation rights (SAR) program on January 1, 2014, 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 5,000 SARs. The required service period is 2 years. The fair value of the SARs are determined to be $4 on December 31, 2014, and $9 on December 31, 2015.

Compute Ferraro’s compensation expense for 2014 and 2015.

Ferraro’s compensation expense 2014
$Ferraro, Inc. established a stock-appreciation rig

Ferraro’s compensation expense for 2015
$Ferraro, Inc. established a stock-appreciation rig

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Ferraro, Inc. established a stock-appreciation rights (SAR) program on January 1, 2014, which entitl...
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