Blue Company establishes a stock-appreciation rights program that entitles its new president Ben Davis to receive cash for the difference between the market price of the stock and a pre-established price of $31 (also market price) on December 31, 2016, on 30,100 SARs. The date of grant is December 31, 2016, and the required employment (service) period is 4 years. President Davis exercises all of the SARS in 2022. The fair value of the SARS is estimated to be $6 per SAR on December 31, 2017; $10 on December 31, 2018; $16 on December 31, 2019: $6 on December 31, 2020; and $19 on December 31, 2021.