Use the Following Information for Questions 75 Through 77

question 122

Multiple Choice

Use the following information for questions 75 through 77.
On January 1, 2014, Korsak, Inc. established a stock appreciation rights plan for its executives. It entitled them to receive cash 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 100,000 SARs. Current market prices of the stock are as follows: Compensation expense relating to the plan is to be recorded over a four-year period beginning January 1, 2014.
-What amount of compensation expense should Korsak recognize for the year ended December 31, 2014?

• A) $ 300,000
• B) $ 450,000
• C) $ 375,000
• D) $1,800,000

---

Definitions:

Fugitive Slave

A slave who fled from their master or the system of slavery, seeking freedom or sanctuary elsewhere.

Gradual Emancipation

A legal process through which the status of slaves was to be slowly abolished over time, rather than instantaneously.

Legal Rights

Entitlements conferred upon individuals by law, guaranteeing certain freedoms and protections under the legal system.

Sexual Assault

Any non-consensual sexual act or behavior towards an individual, a serious crime that impacts victims profoundly and has legal and social repercussions.