Kogo Incorporation started a share appreciation plan on January 1, 2015, when it granted 100,000 rights to its executives. The pre-established price is $ 40 per share, which is the market value of the shares at January 1, 2015. The vesting period is two years. The plan expires on January 1, 2017. Kogo’s closing market price for the years ended December 31, 2015, and 2016 are as follows:
Date Closing Market Price
December 31, 2015……………………. $ 38
December 31, 2016……………………. $ 42
All rights are exercised on January 1, 2017, when the market price is $ 55. What is the compensation expense in 2015 and in 2016?