On January 1, 2020, Aryan Corporation granted its president a share appreciation rights a share appreciation rights (sar) package covering employment over a three-year period. The package was based on sar increases for 26,320 shares over the fair value on January 1, 2020 of $13 per common share. The sar package to be paid in cash at the end of the third year (i.e., December 31, 2022). The fair values of the Aryan shares were as follows:

December 31, 2020		$15/share
December 31, 2021		$18/share
December 31, 2022		$16/share

Prepare the journal entries to record the Share Appreciation Rights (sar) package, and the payment on December 31, 2022 assuming that Aryan follows ASPE.

Show all the calculations, dates and descriptions for the entries.

There should be only four entries in total which includes the entry for recording the sar package, entry for payment, entry for recording negative compensation expense, entry for removing sar liability. NOTE: each entry should have only two accounts debit and credit, it should not be a contra entry.

Read the question carefully and complete all the requirements.