Cullumber Ltd. established a SARs program on January 1, 2020, which entitles executives to receive cash at the date of exercise (any time in the next three years) for the difference between the shares fair value and the pre-established price of $22 on 10,500 SARs. As at December 31, 2020, the shares fair value is $31 per share, the SARs fair value is $141,750, and the executives have not exercised their rights yet. The service period runs for two years (2020 to 2021), and at December 31, 2020, the service period is considered 50% complete.

Your answer is partially correct. Record compensation expense for 2020 assuming that Cullumber follows IFRS. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit December 31, 2020 Compensation Expense 4725 Liability under Share Appreciation Rights Plans 4725 Your answer is partially correct. Record compensation expense for 2020 assuming that Cullumber follows ASPE. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit December 31, 2020 Compensation Expense 7087.5 Liability under Share Appreciation Rights Plans 7087.5