Use the Following Information for Questions

question 9

Multiple Choice

Use the following information for questions.
On January 1, 2016, Luanda Ltd.established a stock appreciation rights plan for its executives.This plan entitles them to receive cash at any time during the next four years for the difference between the market price of its common shares and a pre-established price of $20, on 50,000 SARs.Market prices of the shares are as follows: Compensation expense relating to the plan is to be recorded over a four-year period beginning January 1, 2016.
-On December 31, 2018, 8,000 SARs are exercised by executives.What amount of compensation expense should Luanda recognize for calendar 2018?

• A)$65,000
• B)$162,500
• C)$237,500
• D)$487,500

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Definitions:

Envelope Proteins

Proteins that encase some viruses, playing a crucial role in the infection process by facilitating entry into host cells.

Bacteriophages

A type of virus that infects and replicates within bacteria, often used in molecular biology research.

Cell Walls

The rigid outer layer found in plant, fungal, and certain bacterial cells, providing structural support and protection.

Restriction Enzymes

Proteins used in molecular biology that cut DNA at specific recognition nucleotide sequences, important in genetic engineering.