On January 1, 2017, Cable Corporation Issues 6,000 Stock-Appreciation Rights $\begin{array}{|l|c|c|}\hline\text { Compensation Expense } & 18,000 & \\\hline \text { Obligation under SAR Plan } & & 18,000\\\hline\end{array}$

question 4

Multiple Choice

On January 1, 2017, Cable Corporation issues 6,000 stock-appreciation rights to its key executives. The terms of the plan state that the holders of the rights will receive a cash payment equal to the difference between the market price of the stock on the date of exercise and the pre-established price of $9 per share. There is a three-year vesting period and the rights may be exercised on January 1, 2020. The rights expire on January 1, 2022. The closing market prices follow: December 31, 2017 $12 per share
December 31, 2018 $15 per share
December 31, 2019 $14 per share
What is the appropriate journal entry on December 31, 2018? (Do not round any intermediate calculations. Round your final answer to the nearest dollar.)

• A) \(\begin{array}{|l|c|c|}
• \hline\text { Compensation Expense } & 18,000 & \\
• \hline \text { Obligation under SAR Plan } & & 18,000\\
• \hline
• \end{array}\)
• B) \[\begin{array} { | c | r | r | }
• \hline \text { Obligation under SAR Plan } & 6,000 & \\
• \hline \text { Deferred Compensation } & & 6,000 \\
• \hline
• \end{array}\]
• C) \(\begin{array}{|l|r|r|}
• \hline \text { Compensation Expense } & 72,000 \\
• \hline \text { Obligation under SAR Plan } && 72,000\\
• \hline
• \end{array}\)
• D) \[\begin{array} { | c | r | r | }
• \hline \text { Compensation Expense } & 2,000 & \\
• \hline \text { APIC-SAR } & & 2,000 \\
• \hline
• \end{array}\]

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Definitions:

Energy

The capacity to do work or produce change, existing in various forms such as kinetic, thermal, electrical, chemical, nuclear, or solar.

Form

The shape, visual appearance, or configuration of an object, in various contexts it can refer to something structural, artistic, or abstract.

Metabolic Pathways

Networks of chemical reactions within cells that convert substances into other products, crucial for maintaining life's processes.

Photosynthesis

The process by which green plants, algae, and some bacteria transform light energy into chemical energy, converting carbon dioxide and water into glucose and releasing oxygen as a byproduct.