On January 1, 2021, Galaxy Corp. granted 10,000 stock appreciation rights (SARs) to its executives. The SARs entitled the executives to receive cash for the difference between the market price of Galaxys common stock at exercise and the share price at the date of grant. The SARs vest at the end of 2024 (i.e., 4-year service period) and expire at the end of 2028. Based on an appropriate pricing model, Galaxy determines the fair value of the SARs at various dates to be as follows: January 1, 2021: $8.00 per SAR December 31, 2021: $8.40 per SAR December 31, 2022: $6.00 per SAR What amount of compensation expense from the SARs should Galaxy recognize for the year ended December 31, 2022?

$9,000

$21,000

$30,000

$39,000

Refer to the information in question above.

What is the value of the liability from the SARs that Galaxy should report on its balance sheet for December 31, 2022?

$9,000

$21,000

$30,000

$39,000