On January 1, 2019, as a form of executive compensation, Wadlin Corporation grants share appreciation rights to Robert Brandt. These rights entitle Brandt to receive cash equal to the excess of the quoted market price over a $15 option price for 2,000 shares of the companys common stock on the exercise date. The service period is 3 years (which Brandt is expected to complete), and the rights must be exercised within 5 years. Brandt exercises his rights on December 31, 2022. The fair value per SAR was as follows: 12/31/19, $3.00; 12/31/20, $4.20; 12/31/21, $4.00; and 12/31/22, $5.00. The quoted market price per share of common stock was $20 on December 31, 2022.

Required:

1.	Prepare a schedule to compute the compensation expense related to this SAR plan for 2019 through 2022.
2.	Prepare the December 31, 2022, journal entry related to this SAR plan.

1. Prepare a schedule to compute the compensation expense related to this SAR plan for 2019 through 2022.

Additional Instructions

WADLIN CORPORATION

SAR Annual Compensation Expense

2019-2022

1	Date	Fair Value per SAR	Estimated Total Compensation Cost	Fraction Accrued	Total Compensation Expense to Date	Accrued Compensation Expense to Date	Yearly Compensation Expense
2	12/31/19			1/3
3	12/31/20			2/3
4	12/31/21			3/3
5	12/31/22			3/3
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2. Prepare the journal entry on December 31, 2022, to recognize the SAR compensation expense for 2022 and to record the exercise of the rights.

General Journal Instructions

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GENERAL JOURNAL

	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT
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