On January 1, 2013, Citrus Company issued 100,000 SARs that, upon exercise, entitle key executives to receive compensation equal in value to the excess of the market price at exercise over the share price at the date of grant. Employees may elect to receive cash upon settlement of their SARs. The SARs vest at the end of 2016 (cannot be exercised until then) and expire at the end of 2020. The fair value of the SARs, estimated by an appropriate option pricing model, is $8 per SAR at January 1, 2013. The fair value re-estimated at December 31, 2013 and 2014 is $8.40 and $8.00, respectively. How much compensation expense is recorded for the year ended December 31, 2014?

a) $0

b) $190,000

c) $200,000

d) $210,000