On January 1, 2017, Cable Corporation issues 10,000 stock - appreciation rights to its key executives. The terms of the plan state that the holders of the rights will receive a cash payment equal to the difference between the market price of the stock on the date of exercise and the pre-established price of $8 per share. There is a three-year vesting period and the rights may be exercised on January 1, 2020. The rights expire on January 1, 2022. The closing market prices follow: December 31, 2017 December 31, 2018 December 31, 2019 $11 per share $14 per share $12 per share What is the appropriate journal entry when the stock - appreciation rights are exercised on January 1, 2020 when the market price is $12 per share? O A. Cash APIC - SAR 12,000 12,000 120,000 B. Obligation under SAR Plan Deferred Compensation 120,000 120,000 OC. Compensation Expense Obligation under SAR Plan 120,000 OD. Obligation under SAR Plan 40,000 Cash 40,000