Thank you for all of your help! I will make sure to give the answer a like as well.
As part of its stock-based compensation package, International Electronics granted 24 million stock appreciation rights (SARs) to top officers on January 1, 2024. - At exercise, holders of the SARs are entitled to receive cash or stock equal in value to the excess of the market price at exercise over the share price at the date of grant. - The SARs cannot be exercised until the end of 2027 (vesting date) and expire at the end 2029. - The $1 par common shares have a market price of $46 per share on the grant date. - The fair value of the SARs, estimated by an appropriate option pricing model, is $3 per SAR at January 1, 2024. - The fair value re-estimated at December 31,2024,2025,2026,2027, and 2028 , is $4, $3,$4,$2.50, and $3, respectively. - All recipients are expected to remain employed through the vesting date. Required: 1. to 3. Prepare the appropriate journal entries pertaining to the SARs on January 1, 2024 and December 31, 2024-December 31, 2027 The SARs remain unexercised on December 31, 2028, prepare the appropriate entry. 4. The SARs are exercised on June 6,2029 , when the share price is $50, and executives choose to recelve the market price appreciation in cash. Prepare the appropriate journal entry(s) on that date. Complete this question by entering your answers in the tabs below. Prepare the appropriate journal entries pertaining to the SARs on January 1, 2024 and December 31, 2024-December 31, 2027. The SARs remain unexercised on December 31 , 2028, prepare the appropriate entry. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account fleld. Do not round intermediate calculations. Enter your answers in millions (1.e., 10,000,000 should be entered as 10). Journal entry worksheet 3456 Record the award of 24 million SARs on January 1, 2024 when the market price of the stock is $46 per share and the fair value of the SARs is $3 per SAR. Note: Enter debits before credits. Journal entry worksheet 6 Record any necessary journal entry on December 31, 2024 when the fair value of the SARs is estimated at $4 per SAR. Note: Enter debits before credits. Journal entry worksheet Record any necessary journal entry on December 31, 2025 when the fair value of the SARs is estimated at $3 per SAR. Note: Enter debits before credits. Journal entry worksheet Record any necessary journal entry on December 31, 2026 when the fair value of the SARs is estimated at $4 per SAR. Note: Enter debits before credits. Journal entry worksheet Record any necessary journal entry on December 31, 2027 when the fair value of the SARs is estimated at $2.50 per SAR. Note: Enter debits before credits. Journal entry worksheet Record any necessary journal entry on December 31,2028 when the fair value of the SARs is estimated at $3 per SAR and the SARs remain unexercised. Note: Enter debits before credits. Journal entry worksheet Record any necessary adjustment to compensation expense. Note: Enter debits before credits. Journal entry worksheet Note: Enter debits before credits
