5 On 1.1.2016, MEK Bhd granted 2,000 share appreciation rights to ten employees. The award entitled the employees to a cash payment at the date the rights were exercised equal to the increase in price of the shares since grant date. The rights vested on 31.12.2017 and the employees could exercise their rights in years 2018 and 2019. MEK estimated that the fair value of each rights was RM10 and only 90% of the awards would vest. At the end of year 2018, five employees exercised their rights and the balance at the end of year 2019. The cash paid was based on the intrinsic value. The fair value and intrinsic value of the rights are shown below: Required: Year 2016 Fair value RM12 2017 RM9 2018 RM14 2019 RM13 Intrinsic value RM12 RM13 a) Calculate the amount recognized as expenses and amount disclosed as liability. b) Prepare journal entries to record the above transactions