Fiar Company started a share appreciation plan on January 1, 2018, when it granted 100,000 rights to its executives. The vesting period is 3 years. The rights are settled for cash. The plan expires on January 1, 2021. The SARs fair value for the years ended December 31, 2018, through 2020 are as follows:
Date                                                    Closing Market Price
December 31, 2018 ...............................        $2.00    
December 31, 2019 ...............................          3.00
December 31, 2020 ...............................          1.60  
January 1, 2021 ......................................          1.00

All SARs are exercised on January 1, 2021, when the fair value is $1.

Required

a. What is the compensation expense in 2018, 2019, and 2020?

b. Prepare the journal entries to record the plan.