12. Madison Company started a share appreciation plan on January 1, 2015, when it granted 210,000 rights to its executives. The pre-established price is $49 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. Madison's closing market price for the years ended December 31, 2015, and 2016 are as follows: (Click the icon to view the additional information.) Employees exercise all SARs on January 1, 2017, when the market price is $61. What is the compensation expense in 2015 and in 2016? Prepare all journal entries to record the SAR plan. Determine the compensation expense in 2015. The compensation expense in 2015 is Determine the compensation expense in 2016. The compensation expense in 2016 is Prepare all journal entries to record the SAR plan. (Record debits first, then credits. Exclude explanations from any journal entries.) First, prepare the journal entry to record the compensation expense for the year 2015. December 31, 2015 Account (1) Compensation Expense ||(2) Obligation under SAR Plan (3) Next, prepare the journal entry to record the compensation expense for the year 2016. December 31, 2016 Account (5) Compensation Expense (6) Obligation under str Plan Finally, prepare the journal entry when Madison pays the SARs obligation. January 1, 2017 Account (9) Celiaution under SAR Plan (10) Cash (11) (12) Date December 31, 2015 December 31, 2016 Closing Market Price $ $ 61