Good Boss Inc The Compensation Expense Would Be A)I
B)II
C)III
D)IV
E)none of the Answers Are Correct

Good Boss Inc.had the following pattern of results related to stock appreciation rights. $\begin{array}{lr}\text { Shares in the plan } & 20,000 \\\text { Option price } & \$ 15.00 \\\text { Market price- } &\\\text { end year } 1 & \$ 20.00 \\\text { end year } 2 & \$ 18.00 \\\text { end year } 3 & \$ 22.00\\\end{array}$ The compensation expense would be: $\begin{array}{lrrr}&\text { Year } 1 & \text { Year } 2 & \text { Year 3} \\\text { I. } & \$ 100,000 & \$-0- & \$ 40,000 \\\text { II. } & 100,000 & 60,000 & 40,000 \\\text { III. } & 100,000 & (40,000) & 80,000 \\\text { IV. } & 400,000 & -0- & 40,000\end{array}$

A) I
B) II
C) III
D) IV
E) none of the answers are correct