Problem #$22$: Accounting for Stock Appreciation Rights $($SAR$$s$)$

Clark Industries, Inc. establishes a share$-$appreciation rights plan on January $1,2018.$ The plan entitles executives to receive cash at the date of exercise for the difference between the market price of the stock and the pre$-$established price of $$60$ on $10,000$ SARs. The service period runs for two years $(20182021).$

The value of the SAR$$s at the end of each of year $(2018-2020)$ are as follows:

Quantity of stock:

$10,000$

Pre$-$existing price of stock

$$40$

Value of SAR's at $12/31/18$

$$12$

Value of SAR's at $12/31/19$

$$28$

Value of SAR's at $12/31/20$

$$20$

Requirement: Record the journal entries for the three$-$year period $(2018-2020)$ to record compensation expense relative to the SAR$$s $($Note: Three Journal entries required$)$