Use the Following Information for Questions 75 Through 77

question 1

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.
-On December 31, 2016, 25,000 SARs are exercised by executives. What amount of compensation expense should Korsak recognize for the year ended December 31, 2016?

• A) $475,000
• B) $325,000
• C) $975,000
• D) $130,000

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Definitions:

Ethnic Diversity

Ethnic diversity refers to the presence of multiple ethnic groups within a given society, each with its distinct culture, traditions, and sometimes language.

Genocide

The deliberate and systematic extermination of a racial, ethnic, national, or cultural group.

Tutsis

An ethnic group in Rwanda and Burundi, who were historically one of the principal groups involved in the region's social and political dynamics.

Hutus

An ethnic group primarily associated with the Central African regions, most notably Rwanda, where they have played a significant role in the country's history and conflicts.