On January 1, 2013, Orr Co. established a stock appreciation rights plan for its executives. They could receive cash at any time during the next four years equal to the difference between the market price of the common stock and a preestablished price of $15on 350,000 SARs. The market price is as follows: 12/31/13-$20; 12/31/14-$16; 12/31/15-$18; 12/31/16-$19. On December 31, 2015, 65,000 SARs are exercised, and the remaining SARs are exercised on December 31, 2016. Prepare the journal entry at 12/31/14 to record compensation expense. Prepare the journal entry at 12/31/16 to record the exercise of the remaining SARs

Schedule of Schedule

Date	Market Price	Set Price	Value of SARs	Percent Accrued	Accrued to Date	Expense
12/31/13
12/31/14
12/31/15
12/31/16

Prepare the journal entry at 12/31/14 to record compensation expense

Date	Account Title & Explanation	Debit	Credit
12/31/2014

Prepare the journal entry at 12/31/16 to record the exercise of the remaining SARs.

Date	Account Title & Explanation	Debit	Credit
12/31/2016