*Stock Appreciation Rights On January 1, 2020, Hay Ltd. Established a Share Appreciation

Essay

*Stock appreciation rights
On January 1, 2020, Hay Ltd. established a share appreciation rights (SAR) plan for its executives. They could receive cash at any time during the next four years equal to the difference between the market price of the common shares and a pre-established price of $ 16 for 180,000 SARs. The market prices are:
Dec 31, 2020-$ 21
Dec 31, 2021-$ 18
Dec 31, 2022-$ 19
Dec 31, 2023-$ 20
On December 31, 2022, 40,000 SARs are exercised, and the remaining SARs are exercised on December 31, 2023.
Instructions
a) Prepare a schedule that shows the amount of compensation expense for each of the four years, starting with 2020.
b) Prepare the journal entry at December 31, 2021 to record compensation expense.
c) Prepare the journal entry at December 31, 2023 to record the exercise of the remaining SARs.