On January 1, 2017, Cable Corporation issues 12,500 stock - appreciation rights to it's key executives. The terms of the plan state that the holders of the rights will receive a cash payment of equal to the difference between the market price of the stock the date of exercise and the pre - established price of $9 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 ----- $12 per share

December 31, 2017 ----- $15 per share

December 31, 2017 ----- $13 per share

What is the appropriate journal entry when the stock-appreciation rights are exercised on January 1, 2020 when the market price is $13 per share?