On January 1, 2021 Taffy Inc

question 38

Essay

On January 1, 2021 Taffy Inc. granted 210,000 stock appreciation rights (SARs)to its executives. Each SAR entitled its holder to receive cash equal to the difference between the market price of the common share and the benchmark price of $16. The SARs vested after three years and expired on Dec. 31, 20 23. On January 1, 2024, 100,000 SARs are exercised. The market price of the shares remained at $20. On January 1, 2025, 50,000 SARS are exercised. The market price of the shares remained at $22. The remaining SARs expired.
Pertinent stock-related data are listed below: Assume that Taffy Inc. reports its financial results in accordance with ASPE.
Required:
a. Prepare the journal entry at December 31, 2021, to record compensation expense.
b. Prepare the journal entry at December 31, 2022, to record compensation expense.
c. Prepare the journal entry at December 31, 2023, to record compensation expense.
d. Prepare the journal entry at January 1, 2024, to record the partial exercise of the SARs.
e. Prepare the journal entry at December 31, 2024, to record compensation expense.
f. Prepare the journal entry at January 1, 2025, to record the partial exercise of the SARs.
g. Prepare the journal entry at December 31, 2025, to record compensation expense.
h. Prepare the journal entry at December 31, 2026, to record compensation expense.

Analyze the structure and function of independent regulatory commissions and their insulation from political pressures.

Recognize the geographic distribution and employment trends within the federal civil service.

Examine different perspectives and approaches towards bureaucratic reform and their implications on democracy.

Understand the challenges to achieving scientific administration and the influence of elite interests in regulatory agencies.

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Definitions:

Inattentional Blindness

A psychological phenomenon whereby an individual fails to perceive an unexpected stimulus in plain sight, due to the focus of attention elsewhere.

Selective Attention

The cognitive process of focusing on one particular object or task in the environment while ignoring other irrelevant stimuli.

Blindsight

A condition in which individuals with blindness caused by brain damage can still respond to visual stimuli without consciously perceiving them.

Dual Processing

The principle that our mind operates on two levels: a conscious deliberate level and an unconscious automatic level.