Ferraro, Inc. established a stock-appreciation rights (SAR) program on January 1, 2014, which entitles executives to receive cash at the date of exercise for the difference between the market price of the stock and the pre-established price of $20on5,000SARs. The required service period is 2 years. The fair value of the SARs are determined to be $4on December 31, 2014, and $9on December 31, 2015.

Compute Ferraros compensation expense for 2014 and 2015.

Ferraros compensation expense 2014 $

Ferraros compensation expense for 2015