As part of its stock-based compensation package, International Electronics (IE) granted 44 million stock appreciation rights (SARs) to top officers on January 1,2024. - At exercise, holders of the SARs are entitled to receive stock equal in value to the excess of the market price at exercise over the share price at the date of grant. - The SARs cannot be exercised until the end of 2027 (vesting date) and expire at the end 2029. - The $1 par common shares have a market price of $47 per share on the grant date. - The fair value of the SARs, estimated by an appropriate option pricing model, is $3 per SAR at January 1, 2024. - The fair value re-estimated at December 31 , 2024, 2025, 2026, 2027, and 2028 , is $4,$3,$4,$2.50, and $3, respectively. - All recipients are expected to remain employed through the vesting date. Required: 1-a.Will the SARs be reported as debt or as equity? 1-b to 4.Prepare the appropriate journal entries pertaining to the SARs on January 1, 2024 and December 31, 2024-December 31, 2027. Assuming the SARs remain unexercised on December 31, 2028, prepare the appropriate entry. Prepare the entry when the SARs are exercised on June 6,2029 , when the share price is $50. Complete this question by entering your answers in the tabs below. Will the SARs be reported as debt or as equity