On December 31, 2013, Windsor Company issues 139,000 stock-appreciation rights to its officers entitling them to receive cash for the difference between the market price of its stock and a pre-established price of $11. The fair value of the SARs is estimated to be $5 per SAR on December 31, 2014; $2 on December 31, 2015; $11 on December 31, 2016; and $9 on December 31, 2017. The service period is 4 years, and the exercise period is 7 years.