stock appreciation rights san juan corporation established a stock option plan that 692515

Stock Appreciation Rights

San Juan Corporation established a stock option plan that provides for cash payments to employees based on the appreciation of stock prices from an established option price. The plan was instituted on January 1, 2008, and provides benefits to employees who work for the succeeding three years. Cash payments to employees will be made on January 1, 2011, and will equal the excess of the stock price over the option price on that date. In total, 10,000 of these cash stock appreciation rights (SARs) were granted to employees. The option price established for the stock is $10 per share. The market price of San Juan stock on selected dates in 2008–2010 was as follows:

Prepare the journal entries on San Juan’s books for the years 2008, 2009, 2010, and 2011 related to this plan.