Use the Following Information for Questions 74-76

question 20

Multiple Choice

Use the following information for questions 74-76.
On January 1, 2019, 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, 2019.
-What amount of compensation expense should Luanda recognize for calendar 2019?

• A) $ 150,000
• B) $ 187,500
• C) $ 225,000
• D) $ 900,000

Analyze data to discern trends in production efficiency and cost management.

Differentiate between period costs and product costs, and their respective classifications.

Comprehend the impact of applied and actual overhead in cost accounting.

Understand the difference between product costs and period costs.

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Definitions:

Characteristic

A distinguishing feature or quality that defines an individual, object, or concept.

Non-Aggressive Pornography

Pornographic material that does not depict violence or force, focusing instead on consensual sexual activities.

Sexual Aggression

Behavior that is intended to harm or exert power over another individual in a sexual manner without their consent.

Long-Term Exposure

Describes the condition or effect of being subjected to a substance, environment, or influence over an extended period.