On January 1, 20x1, TORMENT AGONY Co. granted 1,000 share appreciation rights (SARS) to employees with the condition that the employees remain in service for the next three years. Information on the...

Extracted text: On January 1, 20x1, TORMENT AGONY Co. granted 1,000 share appreciation rights (SARS) to employees with the condition that the employees remain in service for the next three years. Information on the SARS is shown below: Date N. of SARS expected to vest Fair value of each SAR Jan. 1. 20x1 Dec. 31, 20x1 Dec. 31, 20x2 Dec. 31, 20х3 1,000 20 900 24 800 30 750 32 All of the 750 SARS that vested were exercised on December 31, 20x3. The intrinsic value (which is equal to the cash paid out) is equal to the fair value of the SARS of P32 on December 31, 20x3. Requirement: Provide all the necessary journal entries.