On January 1, 2017, a company issued 15,000 stock appreciation rights (SARs) to its key executives. The terms of the stock appreciation rights plan indicate that the holders of the rights will receive a cash payment equal to the fair value of the stock appreciation rights on the date of exercise. There is a three-year vesting period. The stock appreciation rights can be exercised beginning on January 1, 2020; the rights expire on January 1, 2022. The stock appreciation rights have a pre-established price of $9. The closing stock prices and stock appreciation right fair values are as follows:

December 31, 2017Stock price = $12; SAR fair value = $3.

December 31, 2018Stock price = $15; SAR fair value = $6.

December 31, 2019Stock price = $13; SAR fair value = $4.

What is the appropriate journal entry on December 31, 2019?