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. Use the following information for the next four items: On December 31, 2017, Nightwolf, Inc. issued share appreciation rights to 50 of its employees.

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. Use the following information for the next four items: On December 31, 2017, Nightwolf, Inc. issued share appreciation rights to 50 of its employees. The rights will vest at the end of 3 years provided the employees remain with the company and provided further that the average revenue growth over the same period is at 10%. The following are the approved terms of the said rights: If the average revenue growth is 10 to 15%, each employee will receive 10,000 share appreciation rights. If the average revenue growth is 16 to 20%, each employee will receive 20,000 share appreciation rights. If the average revenue growth is more than 20%, each employee will receive 30,000 share appreciation rights. On the grant date, each share appreciation right is determined to have a fair value of P15,00, Nightwolf expects an average growth rate of 12.5% during the three-year vesting period and that 10 employees will ultimately resign before the vesting period ends. By the end of 2018, the actual revenue growth rate of the year is 10%. Nightwolf expects that 10 employees will leave by the end of 2019. The fair market value of the share appreciation right on this date is P15.00. By the end of 2019, the actual revenue growth rate for the year is 15%. Nightwolf still expects that 10 employees will leave by the end of 2019. The fair market value of the share appreciation right on this date is P16.75. By the end of 2020, the actual revenue growth rate for the year is 25% and 13 employees have left the company. The fair market value of the share appreciation right on this date is P18.50. Note: Round off amounts to the nearest peso. Based on the above information, answer the following: 1. How much is the compensation expense for the year ended December 31, 2019? 2. How much is the liability for the share appreciation rights as of December 31, 2020

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