Sunland Limited established a share appreciation rights (SARs) program that entitled its new president, Angela Murfitt, to receive cash for the difference between the Sunland Limited common shares fair value and a pre-established price of $30 (also fair value on December 31, 2019), on 69,800 SARs. The date of grant is December 31, 2019, and the required employment (service) period is four years. The common shares fair value fluctuated as follows: December 31, 2020, $34; December 31, 2021, $38; December 31, 2022, $44; December 31, 2023, $34; and December 31, 2024, $47. Sunland Limited recognizes the SARs in its financial statements. Angela Murfitt exercised half of the SARs on June 1, 2025, when the share price was $46. Assume that Sunland follows ASPE.

Question) Prepare the entry at June 1, 2025, for the exercise of the SARs. (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 0 for the amounts.)

I would appreciate it if you could show me the answers with the calculations!

Date June 1, 2025 Account Titles and Explanation Liability under Share Appreciation Rights Plans Cash Compensation Expense Debit 698000 Credit 558400 139600