Andy recently graduated from college and has accepted a job with Union Savings Bank of Pittsburgh. After meeting with his supervisor, he was informed that he has the option to work remotely from home. While he finds the idea of working from home intriguing he is concerned about some of the drawbacks associated with telecommuting. One drawback to telecommuting that Andy must consider is:.

On december 31, 2013, coronado company issues 173,000 stock-appreciation rights to its officers entitling them to receive cash for the difference between the market price of its stock and a pre-established price of $10. the fair value of the sars is estimated to be $5 per sar on december 31, 2014; $2 on december 31, 2015; $10 on december 31, 2016; and $8 on december 31, 2017. the service period is 4 years, and the exercise period is 7 years. prepare a schedule that shows the amount of compensation expense allocable to each year affected by the stock-appreciation rights plan.