$(10$ points$)$

$9$

Mr$.$ James Colt has recently been elected president of Ray$-$lite Company. As an incentive for him to become president, the company offered him the following pay package:

a generous salary starting January $1,2027,$ and

Stock Appreciation Rights that allow him the right to receive $($in cash$)$ the appreciation on $6,000$ shares of common stock $($ par$=$$$5)$ above a hypothetical exercise price of $$9$ for each of the $6,000$ SARs granted. He will be able to exercise the SARs only after working for the company for two years $($i$.$e$.,\frac{1}{1}\frac{?}{2027}-\frac{12}{31}\frac{?}{2028}).$ Assume he will also have a two year exercise period $($i$.$e$.,\frac{1}{1}\frac{?}{2029}-12/31/2030).$

Mr$.$ Colt exercised all his SARs on March $1,2029.$

The company estimated the total fair value of each SAR to be the following on each of the dates listed:

January $1,2027$

December $31,2027$

December $31,2028$

March $1,2029$

$$9$ per SAR;

$$18$ per SAR;

$$19$ per SAR;

$$20$ per SAR;

Prepare an SAR compensation expense table showing the amount of compensation expense that would be shown in each year $2027$ through $2029$ for this SAR plan. Journal entries are not required.