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WP Intermediate > Assignments > Ch 16: Homework Ch 16: Homework 2019 Fall-2020 Sprivy Term Home = e Textbook Send to Gradeboo

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Answer :

Sage's compensation expense for 2020 $11,200
Sage's compensation expense for 2021 $39,200

Explanation:

Sage's compensation expense for 2020

= Number of stock in SARs * Fair value per SARs as on 31 / 12 / 2020 * 1 / 2 years

= 5,600  * $4 * 1 / 2 years = $11,200

Sage's compensation expense for 2021

= (Number of stock in SARs * Fair value per SARs as on 31 / 12 / 2021 * 2 / 2 years) - Sage's compensation expense 2020

= (5,600  * $9 * 2 / 2 years) - $11,200

= $50,400 - $11,200 = $39,200

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