Sunland Limited established a SARS program that entitled its new president, Susan Wilson, to receive cash for the difference between the Sunland common shares' fair value and a pre-established price of $31 (also fair value on December 31, 2022), on 48,700 SARs. The date of grant is December 31, 2022, and the required employment (service) period is four years. The common shares' fair value fluctuated as follows: December 31, 2023, $36; December 31, 2024, $41; December 31, 2025, $46; December 31, 2026, $36; and December 31, 2027, $49. Sunland recognizes the SARS in its financial statements. Susan exercised half of the SARS on June 1, 2028, when the share price was $47. Assume that Sunland follows ASPE.

Sunland Limited established a SARS program that entitled its new president, Susan Wilson, to receive cash for the difference between the Sunland common shares' fair value and a pre-established price of $31 (also fair value on December 31, 2022), on 48,700 SARs. The date of grant is December 31, 2022, and the required employment (service) period is four years. The common shares' fair value fluctuated as follows: December 31, 2023, $36; December 31, 2024, $41; December 31, 2025, $46; December 31, 2026, $36; and December 31, 2027, $49. Sunland recognizes the SARS in its financial statements. Susan exercised half of the SARS on June 1, 2028, when the share price was $47. Assume that Sunland follows ASPE.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 8RE: On January 2, 2019, Brust Corporation grants its new CFO 2,000 restricted share units. Each of the...

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On January 2, 2019, Brust Corporation grants its new CFO 2,000 restricted share units. Each of the time-vested restricted share units entitles the CFO to receive one share of Brust common stock if she remains an employee of the company for 4 years. On January 2, 2019, shares of Brusts 1 par value common are trading at 29.50 per share. The company estimates that the CFO will complete all 4 years of required service with the company. Prepare the journal that Brust should make each year to account for the restricted share units.
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