On January 1, 2017, Coronado Industries established a stock appreciation rights plan for its executives. It entitled them to receive cash at any time during the next four years for the difference between the market price of its common stock and a pre-established price of $20 on 130000 SARs. Current market prices of the stock are as follows:

January 1, 2017	$36 per share
December 31, 2017	39 per share
December 31, 2018	31 per share
December 31, 2019	34 per share

Compensation expense relating to the plan is to be recorded over a four-year period beginning January 1, 2017. What amount of compensation expense should Coronado recognize for the year ended December 31, 2018?