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.

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Definitions:

Genetic Sex

Identification as male or female based on chromosomal and hormonal sex characteristics.

Assigned Gender

refers to the gender designation, often as male or female, given to an individual at birth based on anatomical sex.

Gender Role

The social and cultural expectations associated with a person's sex, influencing behaviors, activities, and attitudes deemed appropriate in society.

Transmisogyny

The intersection of transgender discrimination and misogyny, where transgender women or individuals assigned male at birth who present in a feminine manner are discriminated against.