On January 1, 2020, Up Worx, Inc. granted 10,000 SARs to employees. The rights vest after four years. The rights entitle the employees to receive cash at any time between January 1, 2024 and December 31, 2025 for the difference between the market price of Up Worx common stock and a pre-established price of $15. Management expects the SARS to have an 80% vesting rate. The following information is available with respect to the fair value of the SARs:

Total Fair Value of SARs

December 31, 2020 100,000

December 31, 2021 175,000

December 31, 2022 95,000

December 31, 2023 150,000 a. (6%) What amount of compensation expense does Up Worx recognize in 2020, 2021, and 2022? b. (4%) At the end of 2023, all 10,000 SARs vested (100% vesting). Prepare the journal entry to record 2023 compensation expense. c. (4%) All 10,000 SARs are exercised on January 10, 2024 when Up Worx stock price is $30 per share. Prepare the journal entry or entries related to the exercise of the SARs.