IT Solutions Ltd. has a cash-settled SARs program for employees. These employees will receive a cash payment after five years of service, calculated as the excess of share price over $9.50. In early 20X1, employees in total are granted 210,000 units in the program.

The fair value of one SARs unit is estimated at $1 at the end of 20X1, $3 at the end of 20X2, and $2 at the end of 20X3. Estimated retention is 90% at the end of 20X1, 88% at the end of 20X2, and 75% at the end of 20X3. The payment is made at the end of 20X5.

Required: Provide the journal entry to be recorded with respect to the SARS program at the end of 20X1, 20X2, and 20X3. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.)

1.) Record the entry for the issue of cash-settled SARS to employees

20X1 ____________________

2.) Record the entry for the issue of cash-settled SARS to employees

20X2 ____________________

3.) Record the entry for the issue of cash-settled SARS to employees

20X3 _____________________

Note: Below given are only options that must be used in journal entries.

- No journal entry required

- Common shares

- Compensation expense

- Long-term compensation liability