On January 1,2020, Striking Red Company issued 10,000 share appreciation rights to selected employees that vest after three years, provided the employees remain employed by the company at least until...

Extracted text: On January 1,2020, Striking Red Company issued 10,000 share appreciation rights to selected employees that vest after three years, provided the employees remain employed by the company at least until the exercise date. Each SAR entitles the employee a cash payment for an amount the share price of the company's ordinary share exceeds P 120. The market price of Striking Red's ordinary share at the end of each vesting year is as follows: December 31, 2020 P 140 December 31,2021 150 December 31, 2022 165 REQUIRED: a.) Prepare all the entries in the books of Striking Red Company for years 2020, 2021 and 2022. b.) Give the entry for the exercise of the SAR assuming that 1.) The rights were exercised on January 1,2023, when the market price of the ordinary share is P 165. 2.) The rights were exercised on December 31,2023, when the market price of the ordinary share is P 172.