Good Boss Inc. had the following pattern of results related to stock appreciation rights. Shares in the plan 20,000 Option price $15.00 Market price— end year 1 $20.00 end year 2 $18.00 end year 3 $22.00 The compensation expense would be:
Year 1 Year 2 Year 3
a. $100,000 $ -0- $40,000
b. 100,000 60,000 40,000
c. 100,000 (40,000) 80,000
d. 400,000 -0- 40,000 e. none of the answers are correct