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On January 1st, 20x1, 20,000 units of stock appreciation rights were granted to JKL Inc's 200 employees, each of which received 100 units which accrue evenly over the following three years. The rights allow the employees to receive cash compensation for any stock price increase on December 31st, 20x3, if they are still with the company at that time. The cash to be distributed is the difference between the fair value of the share and the reference price of $5 per share. Cumulative retention rates are expected to be 80% and 70% for 20x1 and 20x2 respectively. Twenty employees forfeited their rights in 20x1 and thirty forfeited their rights in 20x2. On December 31st, 20x3 there were 150 employees working for JKL Inc. The data on the following page applies to JKL's SARS plan:

Year	20x1	20x2	20x3
Market value per share	8	7	10
Reference price per share	5	5	5
Intrinsic value per shares	3	2	5
Estimated fair value per share	4.5	3	n/a
Total fair value (20,000 units)	90,000	60,000
Cash payout value (excluding forfeitures)			100,000

Required: Prepare the required journal entries for 20x1, 20x2 and 20x3 to record the compensation expense and ultimate cash payout related to the company's SARS plan. You do not need to show your work, although a table similar to that prepared in class for similar questions is recommended in order to prepare your entries. The table wont be marked.

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