Use the Following Information for Questions 74-76

question 45

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 2020?

• A) $ 0
• B) $ 25,000
• C) $ 125,000
• D) $ 250,000

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Definitions:

Academic Accountability

The responsibility of educators and institutions to ensure that students meet certain educational standards.

Constructivist Classroom

An educational approach that emphasizes active learning, where students build new understandings based on their experiences and prior knowledge.

Facilitator

An individual who makes an action or process easier or more possible, often used in the context of learning or meeting settings.

Constructivist Approach

An educational theory that emphasizes learning as an active, constructive process where learners build new ideas upon their current knowledge.