On January 1, 2018, Company A established cash settled share appreciation plan for 25 executives of the company. Each executive received 10,000 rights. The benchmark price established was $ 30. Each executive had the right to receive cash for share appreciation over the benchmark price. The plan expires on December 31, 2022. The rights vest after 3 year years (December 31, 2020).

- At the end of 2018 2 executives leave and it is expected that 5 more will leave.

- At the end of 2019 3 more executives leave and it is expected that 3 more will leave.

- At the end of 2020 4 more executives have left.

- At the end of 2020 8 executives exercise their rights.

- At the end of 2021 4 executives exercise their rights.

- At the end of 2022 1 executive exercises their rights.

SAR fair value and market price information is as follows:

- December 31, 2018 FV=$3.10 MP = $ 31.40

- December 31, 2019 FV=$3.90 MP = $ 32.10

- December 31, 2020 FV=$4.55 MP = $ 32.75

- December 31, 2021 FV=$5.35 MP = $ 34.00

- December 31, 2022 FV=$3.25 MP = $ 33.25

Prepare journal entries for the years above. (Below is the solution - could someone tell me how to get these numbers?)

R23 X V fx A B C D E F G H I J K Year Actual Expected Fair Total Opening Value Liability Liability Expense Journal entry 2018 23 18 3.10 186,000.00 0.00 186,000.00 Dr Compensation expense 186,000.00 Cr SARS liability 186,000.00 2019 20 17 3.90 442,000.00 186,000.00 256,000.00 8 Dr Compensation expense 256,000.00 Cr SARS liability 256,000.00 2020 16 na 4.55 728,000.00 442,000.00 286,000.00 10 11 Dr Compensation expense 286,000.00 Cr SARS liability 286,000.00 12 Dr SARS Liability 220000 13 2020 Exercise of rights 14 Cr Cash 220000 508,000.00 15 2020 Must revalue liability for 8 left 16 17 8.00 4.55 364,000.00 508,000.00 -144,000.00 18 Dr SARS liability 144,000.00 Cr Compensation expense 144,000.00 19 Dr SARS Liability 160000 20 2021 Exercise of rights Cr Cash 160000 204,000.00 2021 Must revalue liability for 4 left 4.00 5.35 214,000.00 204,000.00 10,000.00 Dr Compensation expense 10,000.00 26 Cr SARS liability 10,000.00 27 2020 Exercise of rights and expiration of liability Dr SARS Liability 214,000.00 29 Cr Compensation expense 181,500.00 Cr Cash 32,500.00