On January $1,20$X$1,$ Fielding Company initiated an employee stock$-$based compensation plan that grants $80,000$ stock appreciation rights $($SARs$)$ to employees on January $1,20$X$1,$ which will pay the exerciser of each cash SAR an amount equal to the excess of the share price on the exercise date over the $$4$ threshold price. Under the contract, the cash SARs fully vest and become exercisable on January $1,20$X$3$ if the employees continue working for Fielding Company for that two$-$year service period. Fielding cannot elect to settle the award in stock. The cash SARs are exercisable any time between January $1,20$X$3$ and December $31,20$X$3.$