On January 1, 2021, Samantha Clark Corp. established a cash-settled stock appreciation rights plan for its executives, the details of which are listed below: 

■ 100,000 stock appreciation rights (SARs) were granted. 

■ Each SAR entitled the executives to receive cash equal to the difference between the market price of the common shares and a benchmark price of $12. 

■ The SARs vested after three years of service; they expired on December 31, 2025. 

■ On June 15, 2025, 40,000 SARs are exercised. The market price of the shares at time of exercise was $17. 

■ On December 15, 2025, the remaining SARs are exercised. The market price of the shares at time of exercise was $18. 

■ Estimated and actual forfeiture rates follow:

■ Stock price related data follows:

Required: 

a. Complete the schedule below showing the amount of compensation expense for each of the five years, starting with 2021. If necessary, refer to the example illustrated in Exhibit 14-21 for guidance. 

b. Prepare the journal entry at December 31, 2021, to record compensation expense. 

c. Prepare the journal entry at June 15, 2025, to record the partial exercise of the SARs. 

d. Prepare the journal entry at December 15, 2025, to record the exercise of the remaining SARs. 

e. Prepare the journal entry at December 31, 2025, to record the required adjustment to compensation expense.

Exhibit 14-21

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December 31, 2021 December 31, 2022 December 31, 2023 Forfeiture rate 7% 6% 9%