On January 1, 2008, as a form of executive compensation, the Truman Company granted

share appreciation rights (SARs) to James Forrestal. These rights entitle Forrestal to

receive cash equal to the excess of the quoted market price over a $30 option price for

10,000 shares of the company's common stock on the exercise date. The service period is

four years. Forrestal exercises his rights on December 31, 2011. The fair value per SAR

was:

12/31/2008: $7.25

12/31/2019: $3.75

12/31/2010: $5.50

12/31/2011: $4.60

The market price of the common stock was $34.60 on December 31, 2011.

Question:

Prepare a table that calculates and summarizes the expense AND ending liability

associated with the SARs for 2008 and 2009 .