Select the rectangle, then the Fill Tool, and select Fractal Clouds from the Fill Type drop-down list on the Infobar. Click on the center node of the fill arrows, then click the small color wheel icon to the left of the screen palette and change the center color to RGB: 102, 0, 0. Drag the fill arrows as shown to give the appearance of wood grain.
Make a duplicate of the shape (Ctrl-D), apply a black fill, then change the fill type to Linear, and modify the fill path arrows as shown so the white portion of the fill starts in the middle of the shape and ends on the bottom edge.
Center the black and white-filled shape over the wood-grain shape and apply a Flat, Stained Glass transparency, amount 20%. Duplicate this transparent shape, and change the transparency type to Bleach and the amount to 80%. Applying the Bleach transparency over the Stained Glass transparency brings out the highlight while visually maintaining the shadowed area. Group all three elements.
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