In 20X0 ten executive management were awarded units in a phantom stock plan. The plan entitles each executive to either 11,000 common shares or cash equal to the market value of 8,000 shares at the end of 20X3.
The following additional information has been provided:

At the time of the grant, the shares had a market value of $45, and valuation models indicated that the share alternative was worth $47 per share. The fair value of the cash alternative is to be based on the intrinsic value of the plan on each reporting date. When the options vested at the end of 20X3, three executives elected to take cash, and the remaining executives took shares.

Required:
1. Calculate the value of the equity portion of the plan based using the intrinsic value.
2. Prepare the entries to record the annual expense entries and disbursement in 20X0, 20X1, 20X2, and 20X3.

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Share price 31 December 20X0 $45 31 December 20X1 $49 31 December 20X2 $48 31 December 20X3 $51