QUESTION 21 On September 1, 20XS, Wells Co. borrowed $500,000 from Second Bank Inc. Interest is payable annually at 6%. Second Bank's prime rate is 5%. Wells only prepares adjusting entries at its December 31 year-end. On December 31, 20X5, Wells should record accrued interest payable of what amount? O $8,356 $9,945 $10,000 O $10,027 QUESTION 23 On January 1, 20X6, Red Leaf Corp. granted 1,000 cash settled SARs to its employees with a benchmark price of $30. As at December 31,20X6, management estimated that 100% of the SARS would vest. The company follows IFRS. The SARS vested on December 31, 20X7, and will expire on December 31, 20X9. In 20X7, 100 SARs were forfeited. Red Leaf's year end is December 31. Pertinent details of the SARs are as follows: Date Fair value of each SAR January 1, 20X6 $3 December 31, 20x6 $4 December 31, 20X7 $6 What is the compensation expense recognized by Red Leaf for the year ended December 31, 20X7? a $4,000 ob.$3,4000 $1,500 1.85 400